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 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

3. Segment Information (continued)


For the Three Months Ended September 30, 2021	Diversified Reinsurance		AmTrust Reinsurance		Total
Gross premiums written	$	5,684	$	1,137	$	6,821
Net premiums written	$	5,816	$	1,137	$	6,953
Net premiums earned	$	7,521	$	7,509	$	15,030
Other insurance revenue	138		—		138
Net loss and LAE	(554)		(9,960)		(10,514)
Commission and other acquisition expenses	(3,461)		(2,852)		(6,313)
General and administrative expenses	(1,583)		(407)		(1,990)
Underwriting income (loss)	$	2,061	$	(5,710)	(3,649)
Reconciliation to net loss
Net investment income and net realized and unrealized investment losses					6,540

Interest and amortization expenses					(4,832)


Foreign exchange and other gains, net					4,116
Other general and administrative expenses					(4,660)
Income tax benefit					155
Interest in loss from equity method investments					(810)
Net loss					$	(3,140)

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net (loss) income for the nine months ended September 30, 2022 and 2021, respectively:


For the Nine Months Ended September 30, 2022	Diversified Reinsurance		AmTrust Reinsurance		Total
Gross premiums written	$	17,069	$	(18,520)	$	(1,451)
Net premiums written	$	16,605	$	(18,520)	$	(1,915)
Net premiums earned	$	20,012	$	3,804	$	23,816
Other insurance revenue	888		—		888
Net loss and LAE	(2,945)		(19,072)		(22,017)
Commission and other acquisition expenses	(10,684)		(2,127)		(12,811)
General and administrative expenses	(7,007)		(2,281)		(9,288)
Underwriting income (loss)	$	264	$	(19,676)	(19,412)
Reconciliation to net loss
Net investment income and net realized and unrealized investment gains					23,719

Interest and amortization expenses					(14,498)


Foreign exchange and other gains, net					19,121
Other general and administrative expenses					(15,383)
Income tax expense					(451)
Interest in loss from equity method investments					(2,143)
Net loss					$	(9,047)

For the Three Months Ended September 30, 2016 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 186,750
$ 520,104
$ —
$ 706,854
Net premiums written $ 179,092
$ 511,561
$ —
$ 690,653
Net premiums earned $ 175,141
$ 523,137
$ —
$ 698,278
Other insurance revenue 2,345
—
—
2,345
Net loss and LAE (132,396 ) (334,310 ) (45 ) (466,751 )
Commission and other acquisition expenses (39,868 ) (166,836 ) (2 ) (206,706 )
General and administrative expenses (9,038 ) (759 ) —
(9,797 )
Underwriting (loss) income $ (3,816 ) $ 21,232
$ (47 ) 17,369
Reconciliation to net income
Net investment income and net realized gains on investment 37,566
Interest and amortization expenses (6,856 )
Amortization of intangible assets (616 )
Foreign exchange gains 687
Other general and administrative expenses (7,155 )
Income tax expense (199 )
Net income $ 40,796

Net loss and LAE ratio⁽¹⁾
74.6 % 63.9 % 66.6 %
Commission and other acquisition expense ratio⁽²⁾
22.5 % 31.9 % 29.5 %
General and administrative expense ratio⁽³⁾
5.1 % 0.1 % 2.4 %
Expense ratio⁽⁴⁾
27.6 % 32.0 % 31.9 %
Combined ratio⁽⁵⁾
102.2 % 95.9 % 98.5 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

3. Segment Information (continued)


For the Nine Months Ended September 30, 2021	Diversified Reinsurance		AmTrust Reinsurance		Total
Gross premiums written	$	10,947	$	(3,082)	$	7,865
Net premiums written	$	10,600	$	(3,082)	$	7,518
Net premiums earned	$	20,723	$	19,383	$	40,106
Other insurance revenue	946		—		946
Net loss and LAE	(3,216)		(4,330)		(7,546)
Commission and other acquisition expenses	(11,668)		(7,486)		(19,154)
General and administrative expenses	(6,190)		(1,785)		(7,975)
Underwriting income	$	595	$	5,782	6,377
Reconciliation to net income
Net investment income and net realized and unrealized investment gains					32,609

Interest and amortization expenses					(14,495)


Foreign exchange and other gains, net					6,070
Other general and administrative expenses					(21,578)
Income tax benefit					363
Interest in income from equity method investments					4,912
Net income					$	14,258

The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at September 30, 2022 and December 31, 2021:


September 30, 2022	Diversified Reinsurance		AmTrust Reinsurance		Total








Total assets - reportable segments	$	96,068	$	1,481,705	$	1,577,773
Corporate assets	—		—		411,841

Total Assets	$	96,068	$	1,481,705	$	1,989,614

December 31, 2021	Diversified Reinsurance		AmTrust Reinsurance		Total








Total assets - reportable segments	$	126,116	$	1,810,940	$	1,937,056
Corporate assets	—		—		385,554

Total Assets	$	126,116	$	1,810,940	$	2,322,610

For the Nine Months Ended September 30, 2017 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 683,839
$ 1,575,677
$ 81
$ 2,259,597
Net premiums written $ 671,880
$ 1,529,980
$ 90
$ 2,201,950
Net premiums earned $ 623,574
$ 1,450,811
$ 90
$ 2,074,475
Other insurance revenue 7,816
—
—
7,816
Net loss and LAE (487,759 ) (1,047,222 ) (10,176 ) (1,545,157 )
Commission and other acquisition expenses (159,744 ) (465,789 ) 3
(625,530 )
General and administrative expenses (25,819 ) (2,240 ) —
(28,059 )
Underwriting loss $ (41,932 ) $ (64,440 ) $ (10,083 ) (116,455 )
Reconciliation to net loss
Net investment income and net realized gains on investment 131,808
Interest and amortization expenses (18,430 )
Accelerated amortization of senior note issuance cost (2,809 )
Amortization of intangible assets (1,599 )
Foreign exchange losses (12,193 )
Other general and administrative expenses (24,193 )
Income tax expense (1,017 )
Net loss $ (44,888 )

Net loss and LAE ratio⁽¹⁾
77.2 % 72.2 % 74.2 %
Commission and other acquisition expense ratio⁽²⁾
25.3 % 32.1 % 30.0 %
General and administrative expense ratio⁽³⁾
4.1 % 0.1 % 2.5 %
Expense ratio⁽⁴⁾
29.4 % 32.2 % 32.5 %
Combined ratio⁽⁵⁾
106.6 % 104.4 % 106.7 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

~~3. Segment Information (continued)~~

For the Nine Months Ended September 30, 2016 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 667,388
$ 1,591,902
$ —
$ 2,259,290
Net premiums written $ 626,522
$ 1,507,389
$ —
$ 2,133,911
Net premiums earned $ 538,152
$ 1,413,699
$ —
$ 1,951,851
Other insurance revenue 8,696
—
—
8,696
Net loss and LAE (395,718 ) (898,703 ) (2,940 ) (1,297,361 )
Commission and other acquisition expenses (139,895 ) (447,604 ) (2 ) (587,501 )
General and administrative expenses (26,717 ) (2,308 ) —
(29,025 )
Underwriting (loss) income $ (15,482 ) $ 65,084
$ (2,942 ) 46,660
Reconciliation to net income
Net investment income and net realized gains on investment 111,802
Interest and amortization expenses (21,314 )
Accelerated amortization of senior note issuance cost (2,345 )
Amortization of intangible assets (1,846 )
Foreign exchange gains 6,474
Other general and administrative expenses (20,713 )
Income tax expense (1,206 )
Net income $ 117,512

Net loss and LAE ratio⁽¹⁾
72.4 % 63.5 % 66.2 %
Commission and other acquisition expense ratio⁽²⁾
25.6 % 31.7 % 30.0 %
General and administrative expense ratio⁽³⁾
4.8 % 0.2 % 2.5 %
Expense ratio⁽⁴⁾
30.4 % 31.9 % 32.5 %
Combined ratio⁽⁵⁾
102.8 % 95.4 % 98.7 %


~~(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.~~

~~The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at September 30, 2017 and December 31, 2016:~~

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

~~MAIDEN HOLDINGS, LTD.~~

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

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

3. Segment Information (continued)

The following ~~table sets~~tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and nine months ended September 30, ~~2017~~2022 and ~~2016:~~2021:


For the Three Months Ended September 30,	2022		2021
Net premiums written	Total			Total
Diversified Reinsurance

International	$	6,027		$	5,816


Total Diversified Reinsurance	6,027			5,816
AmTrust Reinsurance
Small Commercial Business	(636)			(1,309)
Specialty Program	(43)			22
Specialty Risk and Extended Warranty	(126)			2,424
Total AmTrust Reinsurance	(805)			1,137

Total Net Premiums Written	$	5,222		$	6,953

For the Nine Months Ended September 30,	2022		2021
Net premiums written	Total			Total
Diversified Reinsurance

International	$	16,605		$	10,600


Total Diversified Reinsurance	16,605			10,600
AmTrust Reinsurance
Small Commercial Business	(15,007)			(5,381)
Specialty Program	732			(7)
Specialty Risk and Extended Warranty	(4,245)			2,306
Total AmTrust Reinsurance	(18,520)			(3,082)

Total Net Premiums Written	$	(1,915)		$	7,518

For the Three Months Ended September 30, 2017 2016
Total % of Total Total % of Total
Net premiums written
Diversified Reinsurance
Property $ 37,962
6.2 % $ 30,606
4.4 %
Casualty 129,726
21.0 % 115,360
16.7 %
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 %
AmTrust Reinsurance
Small Commercial Business 295,499
47.9 % 314,677
45.6 %
Specialty Program 63,816
10.3 % 98,895
14.3 %
Specialty Risk and Extended Warranty 50,878
8.2 % 97,989
14.2 %
Total AmTrust Reinsurance 410,193
66.4 % 511,561
74.1 %
Total Net Premiums Written $ 617,330
100.0 % $ 690,653
100.0 %

For the Nine Months Ended September 30, 2017 2016
Total % of Total Total % of Total
Net premiums written
Diversified Reinsurance
Property $ 132,398
6.0 % $ 123,991
5.8 %
Casualty 391,503
17.8 % 365,332
17.1 %
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 %
AmTrust Reinsurance
Small Commercial Business 1,028,905
46.7 % 983,601
46.1 %
Specialty Program 255,767
11.6 % 268,193
12.6 %
Specialty Risk and Extended Warranty 245,308
11.2 % 255,595
12.0 %
Total AmTrust Reinsurance 1,529,980
69.5 % 1,507,389
70.7 %
Other 90
— % —
— %
Total Net Premiums Written $ 2,201,950
100.0 % $ 2,133,911
100.0 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

3. Segment Information (continued)

The following ~~table sets~~tables set forth financial information ~~relating to~~for net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, ~~2017~~2022 and ~~2016:~~2021:


For the Three Months Ended September 30,	2022				2021
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance

International	$	6,932	56.6	%	$	7,521	50.0	%


Total Diversified Reinsurance	6,932		56.6	%	7,521		50.0	%
AmTrust Reinsurance
Small Commercial Business	(636)		(5.2)	%	(1,227)		(8.1)	%
Specialty Program	(43)		(0.4)	%	28		0.2	%
Specialty Risk and Extended Warranty	5,998		49.0	%	8,708		57.9	%
Total AmTrust Reinsurance	5,319		43.4	%	7,509		50.0	%

Total Net Premiums Earned	$	12,251	100.0	%	$	15,030	100.0	%

For the Nine Months Ended September 30,	2022				2021
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance

International	$	20,012	84.0	%	$	20,723	51.7	%


Total Diversified Reinsurance	20,012		84.0	%	20,723		51.7	%
AmTrust Reinsurance
Small Commercial Business	(14,995)		(63.0)	%	(5,073)		(12.6)	%
Specialty Program	733		3.1	%	12		—	%
Specialty Risk and Extended Warranty	18,066		75.9	%	24,444		60.9	%
Total AmTrust Reinsurance	3,804		16.0	%	19,383		48.3	%

Total Net Premiums Earned	$	23,816	100.0	%	$	40,106	100.0	%

For the Three Months Ended September 30, 2017 2016
Total % of Total Total % of Total
Net premiums earned
Diversified Reinsurance
Property $ 43,362
6.6 % $ 29,921
4.3 %
Casualty 130,428
20.0 % 105,893
15.2 %
Accident and Health 22,780
3.5 % 18,436
2.6 %
International 20,943
3.2 % 20,891
3.0 %
Total Diversified Reinsurance 217,513
33.3 % 175,141
25.1 %
AmTrust Reinsurance
Small Commercial Business 314,773
48.1 % 320,596
45.9 %
Specialty Program 59,143
9.1 % 89,856
12.9 %
Specialty Risk and Extended Warranty 62,437
9.5 % 112,685
16.1 %
Total AmTrust Reinsurance 436,353
66.7 % 523,137
74.9 %
Total Net Premiums Earned $ 653,866
100.0 % $ 698,278
100.0 %

For the Nine Months Ended September 30, 2017 2016
Total % of Total Total % of Total
Net premiums earned
Diversified Reinsurance
Property $ 122,888
5.9 % $ 103,023
5.3 %
Casualty 375,141
18.1 % 313,736
16.1 %
Accident and Health 63,878
3.1 % 55,788
2.8 %
International 61,667
3.0 % 65,605
3.4 %
Total Diversified Reinsurance 623,574
30.1 % 538,152
27.6 %
AmTrust Reinsurance
Small Commercial Business 946,782
45.6 % 864,699
44.3 %
Specialty Program 251,153
12.1 % 251,543
12.9 %
Specialty Risk and Extended Warranty 252,876
12.2 % 297,457
15.2 %
Total AmTrust Reinsurance 1,450,811
69.9 % 1,413,699
72.4 %
Other 90
— % —
— %
Total Net Premiums Earned $ 2,074,475
100.0 % $ 1,951,851
100.0 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

4. Investments


a)	~~Fixed Maturities and Other Investments~~

~~During the second quarter~~The Company holds: (i) available-for-sale ("AFS") portfolios of ~~2017, we designated additional~~ fixed ~~maturities with a~~maturity and equity securities, carried at fair ~~value~~value; (ii) other investments, of $391,934 as held-to-maturity ("HTM") and during 2016 we designated fixed maturities with a total fair value of $155,538 as HTM reflecting our intent to hold these securities to maturity. The net unrealized holding gain of $4,313 and $15,770, respectively, aswhich certain investments are carried at each designation date continues to be reported in the carrying value of the HTM securities and is amortized through other comprehensive income over the remaining life of the securities using the effective yield method in a manner consistent with the amortization of any premium or discount.

~~The original or amortized cost, estimated~~ fair value and investments in direct lending entities are carried at cost less impairment; (iii) equity method investments; and (iv) funds held - directly managed.

a)Fixed Maturities

The amortized cost, gross unrealized gains and losses, and fair value of fixed maturities ~~and other investments~~ at September 30, ~~2017~~2022 and December 31, ~~2016,~~2021 are as follows:


September 30, 2022	Original or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
U.S. treasury bonds	$	58,464	$	—	$	(241)	$	58,223
U.S. agency bonds – mortgage-backed	73,874		—		(7,682)		66,192
Collateralized mortgage-backed securities	7,199		—		(397)		6,802
Non-U.S. government bonds	12,586		—		(1,605)		10,981
Collateralized loan obligations	175,047		—		(30,514)		144,533
Corporate bonds	105,144		—		(19,902)		85,242


Total fixed maturity investments	$	432,314	$	—	$	(60,341)	$	371,973

September 30, 2017 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value
Available-for-sale ("AFS") fixed maturities :
U.S. treasury bonds $ 5,194
$ 150
$ (8 ) $ 5,336
U.S. agency bonds – mortgage-backed 2,004,645
14,208
(12,451 ) 2,006,402
Non-U.S. government and supranational bonds 33,392
216
(2,012 ) 31,596
Asset-backed securities 257,969
4,456
(164 ) 262,261
Corporate bonds 1,541,296
52,717
(17,624 ) 1,576,389
Municipal bonds 2,500
103
—
2,603
Total AFS fixed maturities 3,844,996
71,850
(32,259 ) 3,884,587
Held-to-maturity ("HTM") fixed maturities:
Corporate bonds 1,057,943
34,027
(748 ) 1,091,222
Municipal bonds 60,425
459
—
60,884
Total HTM fixed maturities 1,118,368
34,486
(748 ) 1,152,106
Other investments 5,640
1,401
—
7,041
Total investments $ 4,969,004
$ 107,737
$ (33,007 ) $ 5,043,734

December 31, 2016 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value
AFS fixed maturities:
U.S. treasury bonds $ 5,186
$ 238
$ (11 ) $ 5,413
U.S. agency bonds – mortgage-backed 1,720,436
12,867
(17,265 ) 1,716,038
U.S. agency bonds – other 18,082
20
—
18,102
Non-U.S. government and supranational bonds 35,158
73
(5,297 ) 29,934
Asset-backed securities 217,232
3,713
(69 ) 220,876
Corporate bonds 1,947,347
30,951
(62,093 ) 1,916,205
Municipal bonds 62,201
2,897
—
65,098
Total AFS fixed maturities 4,005,642
50,759
(84,735 ) 3,971,666
HTM fixed maturities:
Corporate bonds 752,212
16,370
(2,447 ) 766,135
Total HTM fixed maturities 752,212
16,370
(2,447 ) 766,135
Other investments 10,057
3,003
—
13,060
Total investments $ 4,767,911
$ 70,132
$ (87,182 ) $ 4,750,861

~~MAIDEN HOLDINGS, LTD.~~

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

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

~~4. Investments (continued)~~


December 31, 2021	Original or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
U.S. treasury bonds	$	59,989	$	—	$	(110)	$	59,879
U.S. agency bonds – mortgage-backed	96,554		2,429		(193)		98,790
Collateralized mortgage-backed securities	14,972		565		—		15,537
Non-U.S. government bonds	3,163		113		—		3,276
Collateralized loan obligations	183,974		140		(5,093)		179,021
Corporate bonds	236,692		10,094		(6,144)		240,642


Total fixed maturity investments	$	595,344	$	13,341	$	(11,540)	$	597,145

The contractual maturities of our fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



September 30, 2022	Amortized cost		Fair value
Due in one year or less	$	65,624	$	64,525
Due after one year through five years	92,969		77,117
Due after five years through ten years	17,601		12,804

	176,194		154,446
U.S. agency bonds – mortgage-backed	73,874		66,192
Collateralized mortgage-backed securities	7,199		6,802
Collateralized loan obligations	175,047		144,533
Total fixed maturity investments	$	432,314	$	371,973

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

AFS fixed maturities HTM fixed maturities
September 30, 2017 Amortized cost Fair value Amortized cost Fair value
Maturity
Due in one year or less $ 40,440
$ 38,784
$ 49,293
$ 49,298
Due after one year through five years 577,760
583,569
335,922
346,747
Due after five years through ten years 961,682
990,968
723,297
746,131
Due after ten years 2,500
2,603
9,856
9,930
1,582,382
1,615,924
1,118,368
1,152,106
U.S. agency bonds – mortgage-backed 2,004,645
2,006,402
—
—
Asset-backed securities 257,969
262,261
—
—
Total fixed maturities $ 3,844,996
$ 3,884,587
$ 1,118,368
$ 1,152,106
4. Investments (continued)

The following tables summarize fixed maturities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position:


																	Less than 12 Months				12 Months or More				Total
	Less than 12 Months					12 Months or More					Total
September 30, 2017	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Fixed maturities
September 30, 2022																September 30, 2022	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. treasury bonds	$	—	$	—		$	592	$	(8	)	$	592	$	(8	)	U.S. treasury bonds	$	58,076	$	(239)	$	147	$	(2)	$	58,223	$	(241)
U.S. agency bonds – mortgage-backed	700,173		(5,545		)	390,211		(6,906		)	1,090,384		(12,451		)	U.S. agency bonds – mortgage-backed	63,136		(6,982)		3,056		(700)		66,192		(7,682)
Non–U.S. government and supranational bonds	12,678		(1,116		)	15,132		(896		)	27,810		(2,012		)
Asset-backed securities	21,499		(105		)	3,323		(59		)	24,822		(164		)
Collateralized mortgage-backed securities																Collateralized mortgage-backed securities	6,802		(397)		—		—		6,802		(397)
Non-U.S. government bonds																Non-U.S. government bonds	10,981		(1,605)		—		—		10,981		(1,605)
Collateralized loan obligations																Collateralized loan obligations	63,813		(6,602)		80,720		(23,912)		144,533		(30,514)
Corporate bonds	152,959		(4,437		)	262,782		(13,935		)	415,741		(18,372		)	Corporate bonds	63,739		(11,718)		21,503		(8,184)		85,242		(19,902)

Total temporarily impaired fixed maturities	$	887,309	$	(11,203	)	$	672,040	$	(21,804	)	$	1,559,349	$	(33,007	)	Total temporarily impaired fixed maturities	$	266,547	$	(27,543)	$	105,426	$	(32,798)	$	371,973	$	(60,341)

At September 30, ~~2017,~~2022, there were ~~approximately 148~~120 securities in an unrealized loss position with a fair value of ~~$1,559,349~~$371,973 and unrealized losses of ~~$33,007.~~$60,341. Of these securities in an unrealized loss position, there were 9331 securities in our portfolio that have been in an unrealized loss position for 12twelve months or greater with a fair value of ~~$672,040~~$105,426 and unrealized losses of ~~$21,804.~~$32,798.

~~MAIDEN HOLDINGS, LTD.~~

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

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

~~4. Investments (continued)~~


																	Less than 12 Months				12 Months or More				Total
	Less than 12 Months					12 Months or More					Total
December 31, 2016	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Fixed maturities
December 31, 2021																December 31, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. treasury bonds	$	589	$	(11	)	$	—	$	—		$	589	$	(11	)	U.S. treasury bonds	$	59,879	$	(110)	$	—	$	—	$	59,879	$	(110)
U.S. agency bonds – mortgage-backed	997,943		(14,440		)	47,969		(2,825		)	1,045,912		(17,265		)	U.S. agency bonds – mortgage-backed	4,415		(193)		—		—		4,415		(193)
Non-U.S. government and supranational bonds	3,169		(160		)	25,236		(5,137		)	28,405		(5,297		)
Asset-backed securities	30,589		(69		)	—		—			30,589		(69		)

Collateralized loan obligations																Collateralized loan obligations	117,148		(5,057)		5,064		(36)		122,212		(5,093)
Corporate bonds	642,599		(15,058		)	357,954		(49,482		)	1,000,553		(64,540		)	Corporate bonds	38,537		(2,775)		27,852		(3,369)		66,389		(6,144)

Total temporarily impaired fixed maturities	$	1,674,889	$	(29,738	)	$	431,159	$	(57,444	)	$	2,106,048	$	(87,182	)	Total temporarily impaired fixed maturities	$	219,979	$	(8,135)	$	32,916	$	(3,405)	$	252,895	$	(11,540)

At December 31, ~~2016,~~2021, there were ~~approximately 251~~44 securities in an unrealized loss position with a fair value of ~~$2,106,048~~$252,895 and unrealized losses of ~~$87,182.~~$11,540. Of these securities in an unrealized loss position, there were 918 securities in our portfolio that have been in an unrealized loss position for 12twelve months or greater with a fair value of ~~$431,159~~$32,916 and unrealized losses of ~~$57,444.~~$3,405.

~~OTTI~~Other-than-temporarily impaired ("OTTI")

The Company performs quarterly reviews of its fixed maturities in order to determine whether declines in fair value below the amortized cost basis were considered other-than-temporary in accordance with applicable guidance. At September 30, ~~2017,~~2022, we ~~have~~ determined that ~~the~~ unrealized losses on fixed maturities were primarily due to ~~widening of credit and~~changes in interest ~~rate spreads~~rates as well as the impact of foreign exchange rate changes on certain foreign currency denominated ~~AFS~~ fixed maturities since their date of purchase. ~~Because we do~~All fixed maturity securities continue to pay the expected coupon payments under the contractual terms of the securities. Any credit-related impairment related to fixed maturity securities that the Company does not intend to sell ~~these securities and it~~or is not more likely than not that wethe Company will be required to ~~do so until a~~sell before its anticipated recovery of ~~fair value to~~their amortized cost basis is recognized in net income, with the non-credit related impairment recognized in comprehensive income.

Based on the Company's analysis, our fixed maturity portfolio is of high credit quality and we ~~currently~~ believe the amortized cost basis of the securities will ultimately be recovered. The Company continually monitors the credit quality of the fixed maturity investments to assess if it is probable that weit will ~~collect all amounts due according to their respective~~receive contractual ~~terms. Therefore, we do not consider these fixed maturities to be other-than-temporarily impaired ("OTTI") at September 30, 2017. The Company has recognized~~or estimated cash flows in the form of principal and interest. There was no ~~OTTI through earnings~~impairment recorded for the three and nine months ended September 30, ~~2017~~2022 and ~~2016.~~2021, respectively.

~~The following summarizes the credit ratings of our fixed maturities:~~

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 %

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

4. Investments (continued)

Ratings⁽¹⁾ at December 31, 2016
Amortized cost Fair value % of Total
fair value
U.S. treasury bonds $ 5,186
$ 5,413
0.1 %
U.S. agency bonds 1,738,518
1,734,140
36.6 %
AAA 170,515
171,090
3.6 %
AA+, AA, AA- 238,315
237,169
5.0 %
A+, A, A- 1,386,023
1,374,860
29.0 %
BBB+, BBB, BBB- 1,053,529
1,047,376
22.2 %
BB+ or lower 165,768
167,753
3.5 %
Total fixed maturities $ 4,757,854
$ 4,737,801
100.0 %


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


b)	~~Other Investments~~

~~The table below shows our portfolio of other investments:~~

September 30, 2017 December 31, 2016
Fair value % of Total
fair value Fair value % of Total
fair value
Investment in limited partnerships $ 5,541
78.7 % $ 5,474
41.9 %
Investment in quoted equity —
— % 6,586
50.4 %
Other 1,500
21.3 % 1,000
7.7 %
Total other investments $ 7,041
100.0 % $ 13,060
100.0 %

The ~~Company has a remaining unfunded commitment on its investment in limited partnerships~~following tables summarize the credit ratings of ~~approximately $319~~our fixed maturities as at September 30, ~~2017~~2022 and December 31, 2021:


September 30, 2022	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	58,464	$	58,223	15.6	%
U.S. agency bonds	73,874		66,192		17.8	%
AAA	147,990		119,653		32.2	%
AA+, AA, AA-	44,766		40,812		11.0	%
A+, A, A-	46,912		37,616		10.1	%
BBB+, BBB, BBB-	54,535		45,066		12.1	%
BB+ or lower	5,773		4,411		1.2	%
Total fixed maturities (1)	$	432,314	$	371,973	100.0	%


December 31, 2021	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	59,989	$	59,879	10.0	%
U.S. agency bonds	96,554		98,790		16.6	%
AAA	161,179		156,706		26.2	%
AA+, AA, AA-	38,999		39,140		6.6	%
A+, A, A-	99,748		99,962		16.7	%
BBB+, BBB, BBB-	126,770		129,618		21.7	%
BB+ or lower	12,105		13,050		2.2	%
Total fixed maturities(1)	$	595,344	$	597,145	100.0	%

(1)Ratings above are based on Standard & Poor’s ("S&P"), or equivalent, ratings.

b)Other Investments, Equity Securities and Equity Method Investments

Certain of the Company's other investments and equity method investments are subject to restrictions on redemptions and sales that are determined by the governing documents, which could limit our ability to liquidate those investments. These restrictions may include lock-ups, redemption gates, restricted share classes, restrictions on the frequency of redemption and notice periods. A gate is the ability to deny or delay a redemption request. Certain other investments and equity method investments may not have any restrictions governing their sale, but there is no active market and no guarantee that we will be able to execute a sale in a timely manner. In addition, even if certain other investments and equity method investments are not eligible for redemption or sales are restricted, the Company may still receive income distributions from those investments.

Other investments

The table shows the composition of the Company's other investments as of September 30, 2022 and December 31, 2021:


	September 30, 2022				December 31, 2021
	Carrying value		% of Total		Carrying value		% of Total
Private equity funds	$	31,777	22.6	%	$	23,324	19.8	%
Private credit funds	24,129		17.1	%	20,922		17.8	%
Other privately held investments	32,115		22.8	%	30,500		25.9	%

Total other investments at fair value	88,021		62.5	%	74,746		63.5	%
Investments in direct lending entities (at cost)	52,783		37.5	%	42,976		36.5	%
Total other investments	$	140,804	100.0	%	$	117,722	100.0	%

The Company's investments in direct lending entities of $52,783 at September 30, 2022 (December 31, ~~2016~~2021 - ~~$463).~~


c)	~~Net Investment Income~~

~~Net investment~~$42,976) are carried at cost less impairment, if any, with any indication of impairment recognized in net income when determined. No impairment was ~~derived from~~recognized for the ~~following sources:~~three and nine months ended September 30, 2022 and 2021. Please see "Note 5(d). Fair Value Measurements" for additional information regarding this investment.

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Fixed maturities $ 40,369
$ 35,769
$ 123,849
$ 108,018
Cash and cash equivalents 899
506
1,328
1,147
Loan to related party 913
599
2,441
1,729
Other 569
572
1,460
1,519
42,750
37,446
129,078
112,413
Investment expenses (1,927 ) (1,780 ) (5,586 ) (5,122 )
Net investment income $ 40,823
$ 35,666
$ 123,492
$ 107,291

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

4. Investments (continued)


d)	~~Realized Gains (Losses) on Investment~~

Equity Securities

Equity securities include privately held common and preferred stocks and publicly traded common stocks. The Company's publicly traded equity investments in common stocks trade on major exchanges. The Company's privately held equity investments in common and preferred stocks are direct investments in companies that the Company believes offer attractive risk adjusted returns or offer other strategic advantages. Each investment may have its own unique terms and conditions and there may be restrictions on disposals. There is no active market for these investments.

The following table provides the cost and fair values of the equity securities held at September 30, 2022 and December 31, 2021:


	September 30, 2022				December 31, 2021
	Cost		Fair Value		Cost		Fair Value
Privately held equity securities	$	38,260	$	42,002	$	22,756	$	22,829
Publicly traded equity securities	559		598		559		1,174
Total equity securities	$	38,819	$	42,600	$	23,315	$	24,003

Equity Method Investments

The Company's equity method investments include real estate investments, hedge fund investments, and other investments. The table below shows the carrying value of our equity method investments as of September 30, 2022 and December 31, 2021:


	September 30, 2022				December 31, 2021
	Carrying Value		% of Total		Carrying Value		% of Total
Real estate investments	$	44,925	56.0	%	$	44,050	52.6	%
Hedge fund investments	15,447		19.3	%	32,929		39.3	%
Other investments	19,793		24.7	%	6,763		8.1	%
Total equity method investments	$	80,165	100.0	%	$	83,742	100.0	%

The equity method investments above include limited partnerships which are variable interests issued by variable interest entities ("VIEs"). The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs, therefore, the Company is not the primary beneficiary of these VIEs. The Company is deemed to have limited influence over the operating and financial policies of the investee and accordingly, these investments are reported under the equity method of accounting. In applying the equity method of accounting, the investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the investee's net income or loss. Generally, the maximum exposure to loss on these interests is limited to the amount of commitment made by the Company as more fully described in "Note 11 - Commitments, Contingencies and Guarantees" in these condensed consolidated financial statements.

c)Net Investment Income

Net investment income was derived from the following sources for the three and nine months ended September 30, 2022 and 2021:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Fixed maturities	$	2,259	$	4,449	$	7,074	$	15,535
Income on funds withheld	2,616		2,708		8,753		7,928
Interest income from loan to related party	1,771		885		3,808		2,611
Cash and cash equivalents and other investments	930		377		2,292		613
	7,576		8,419		21,927		26,687

Investment expenses	(939)		(942)		(1,056)		(2,091)
Net investment income	$	6,637	$	7,477	$	20,871	$	24,596

d) Net Realized and Unrealized Investment Gains (Losses)

Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method. The following ~~provides an analysis of~~tables show the net realized and unrealized investment gains ~~on investment~~(losses) included in the Condensed Consolidated Statements of ~~Income:~~

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 on investment $ 6,856
$ (997 ) $ 5,859

For the Three Months Ended September 30, 2016 Gross gains Gross losses Net
AFS fixed maturities $ 1,813
$ —
$ 1,813
Other investments 87
—
87
Net realized gains on investment $ 1,900
$ —
$ 1,900

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 on investment $ 9,569
$ (1,253 ) $ 8,316

For the Nine Months Ended September 30, 2016 Gross gains Gross losses Net
AFS fixed maturities $ 4,953
$ (891 ) $ 4,062
Other investments 449
—
449
Net realized gains on investment $ 5,402
$ (891 ) $ 4,511

~~Proceeds from sales of fixed maturities classified as AFS were $97,357 and $199,751~~Income for the three and nine months ended September 30, ~~2017, respectively (2016 - $15,260~~2022 and ~~$101,923, respectively).~~

~~Net unrealized (losses) gains were as follows:~~2021:

September 30, 2017 December 31, 2016
Fixed maturities $ 47,888
$ (23,635 )
Other investments 1,401
3,003
Total net unrealized gains (losses) 49,289
(20,632 )
Deferred income tax (79 ) (84 )
Net unrealized gains (losses), net of deferred income tax $ 49,210
$ (20,716 )
Change, net of deferred income tax $ 69,926


e)	~~Restricted Cash and Cash Equivalents and Investments~~

We are required to maintain assets on deposit to support our reinsurance operations and to serve as collateral for our reinsurance liabilities under various reinsurance agreements. The assets on deposit are available to settle reinsurance liabilities. We also utilize trust accounts to collateralize business with our reinsurance counterparties. These trust accounts generally take the place of letter of credit requirements.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

4. Investments (continued)

~~The assets in trust as collateral are primarily cash~~


For the Three Months Ended September 30, 2022	Gross gains		Gross losses		Net
Fixed maturities	$	591	$	(495)	$	96
Equity securities	217		(63)		154
Other investments	393		(2,215)		(1,822)
Net realized and unrealized investment gains (losses)	$	1,201	$	(2,773)	$	(1,572)

For the Three Months Ended September 30, 2021	Gross gains		Gross losses		Net
Fixed maturities	$	1,890	$	(99)	$	1,791
Equity securities	106		(3,001)		(2,895)
Other investments	297		(130)		167
Net realized and unrealized investment gains (losses)	$	2,293	$	(3,230)	$	(937)

For the Nine Months Ended September 30, 2022	Gross gains		Gross losses		Net
Fixed maturities	$	1,829	$	(637)	$	1,192
Equity securities	3,876		(875)		3,001
Other investments	2,825		(4,170)		(1,345)
Net realized and unrealized investment gains (losses)	$	8,530	$	(5,682)	$	2,848

For the Nine Months Ended September 30, 2021	Gross gains		Gross losses		Net
Fixed maturities	$	6,137	$	(343)	$	5,794
Equity securities	5,168		(3,638)		1,530
Other investments	838		(149)		689
Net realized and unrealized investment gains (losses)	$	12,143	$	(4,130)	$	8,013

Realized and ~~highly rated fixed maturities. The~~unrealized gains and losses from equity securities detailed above include both sales of equity securities and unrealized gains and losses from fair value ~~of our restricted assets was~~changes.The unrealized gains and losses recognized in net income for the three and nine months ended September 30, 2022 and 2021 for investments still held at September 30, 2022 and 2021, respectively, were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Net gains (losses) recognized for equity securities	$	154	$	(2,895)	$	3,001	$	1,530
Net gains recognized for equity securities divested	—		—		—		(441)
Unrealized gains (losses) recognized for equity securities still held at reporting date	$	154	$	(2,895)	$	3,001	$	1,089

Proceeds from sales of fixed maturity investments were $35,107 and $139,645 for the three and nine months ended September 30, 2022, respectively (2021 - $126,282 and $332,636, respectively).

Net unrealized gains (losses) were as follows at September 30, 2022 and December 31, 2021, respectively:


	September 30, 2022		December 31, 2021
Fixed maturity investments	$	(60,341)	$	1,801
Equity method investments	—		(4,414)
Total net unrealized losses	(60,341)		(2,613)
Deferred income tax	216		(80)
Net unrealized losses, net of deferred income tax	$	(60,125)	$	(2,693)
Change, net of deferred income tax	$	(57,432)	$	(52,050)

September 30, 2017 December 31, 2016
Restricted cash – third party agreements $ 80,999
$ 56,891
Restricted cash – related party agreements 50,467
46,777
Restricted cash – U.S. state regulatory authorities 132
120
Total restricted cash 131,598
103,788
Restricted investments – in trust for third party agreements at fair value (Amortized cost: 2017 – $1,337,185; 2016 – $1,307,926)
1,354,548
1,299,569
Restricted investments AFS– in trust for related party agreements at fair value (Amortized cost: 2017 – $2,193,678; 2016 – $2,242,565)
2,218,382
2,225,066
Restricted investments HTM– in trust for related party agreements at fair value (Amortized cost: 2017 – $1,118,368; 2016 – $752,212)
1,152,106
766,135
Restricted investments – in trust for U.S. state regulatory authorities (Amortized cost: 2017 – $4,071; 2016 – $4,059)
4,188
4,238
Total restricted investments 4,729,224
4,295,008
Total restricted cash and investments $ 4,860,822
$ 4,398,796

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

4. Investments (continued)

e)Restricted Cash and Cash Equivalents and Investments

The Company is required to provide collateral for its reinsurance liabilities under various reinsurance agreements and utilizes trust accounts to collateralize business with reinsurance counterparties. The assets in trust as collateral are primarily cash and highly rated fixed maturities. The fair values of restricted assets at September 30, 2022 and December 31, 2021 are:


	September 30, 2022		December 31, 2021
Restricted cash – third party agreements	$	15,297	$	19,177
Restricted cash – related party agreements	32,825		20,242
Total restricted cash	48,122		39,419
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2022 – $50,394; 2021 – $48,860)	50,235		48,845
Restricted investments – in trust for related party agreements at fair value (amortized cost: 2022 – $327,148; 2021 – $493,128)	274,103		493,883

Total restricted investments	324,338		542,728
Total restricted cash and investments	$	372,460	$	582,147

5. Fair Value of Financial Instruments

(a) Fair Values of Financial Instruments

Fair Value Measurements — Accounting Standards Codification ~~("ASC")~~ Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability ~~(i.e. the "exit price")~~ in an orderly transaction between open market participants at the measurement date. Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of ~~inputs as follows:~~inputs:

•Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. ~~Valuation adjustments and block discounts are not applied to Level 1 instruments. Since~~Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Examples of assets and liabilities utilizing Level 1 inputs include: ~~exchange-traded equity securities and~~ U.S. Treasury bonds;

and publicly traded equity securities;

•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,~~severity, 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.~~use developed on the basis of the best information available in the particular circumstances. 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 the Level ~~3. We use~~3 hierarchy.

The Company uses prices and inputs that are current as 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 hierarchy 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.~~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~~representative 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.~~valued. 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.

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)

ASC 825, “"Disclosure About Fair Value of Financial Instruments", requires all entities to disclose the fair value of their financial instruments ~~both~~for 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 that are measured at fair value on a recurring basis held at September 30, ~~2017.~~2022 and December 31, 2021.

U.S. government and U.S. agency bonds — 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~~Collateralized loan obligations ("CLO") - These asset backed securities —are originated by a variety of financial institutions that on acquisition are rated BBB-/Baa3 or higher. These securities ~~comprise CMBS~~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 CLO are observable market inputs, the fair values are included in the Level 2 fair value hierarchy.

Commercial mortgage-backed securities ("CMBS") - These asset backed securities are 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 is~~values are included in the Level 2 fair value hierarchy.

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

~~Municipal bonds~~ Equity securities - Equity securities include publicly traded common and preferred stocks, and privately held common and preferred stocks. The fair value of publicly traded common and preferred stocks is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. These investments are carried at fair value using observable market pricing data and is included in the Level 1 fair value hierarchy. Any unrealized gains or losses on the investment is recorded in net income in the reporting period in which it occurs. The privately held common and preferred stocks are valued using significant inputs that are unobservable where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values, therefore, these investments are classified as Level 3 in the fair value hierarchy.

Other investments — ~~Bonds issued by U.S. state~~Includes unquoted investments comprised of the following types of investments:

•Privately held investments: These are direct equity investments in common and ~~municipality entities or agencies.~~preferred shares of privately held entities. The fair values are estimated using quarterly financial statements and/or recent private market transactions and thus are included under Level 3 of ~~municipal bonds~~the fair value hierarchy due to unobservable market data used for valuation.

•Private credit funds: These are ~~generally priced~~privately held equity investments in common stock of entities that lend money valued using the most recently available or quarterly net asset value ("NAV") statements as provided by ~~independent pricing services.~~the external fund manager or third-party administrator and therefore measured using the NAV as a practical expedient.

•Private equity funds: These are comprised of private equity funds, private equity co-investments with sponsoring entities and investments in real estate limited partnerships and joint ventures. The ~~pricing services typically use spreads obtained from broker-dealers, trade prices~~fair value is estimated based on the most recently available NAV as advised by the external fund manager or third-party administrator. The fair values are therefore measured using the NAV as a practical expedient.

Derivative Instruments - The Company has recently entered into reinsurance contracts that are accounted for as derivatives. These reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event. The Company considers these contracts to be part of its underwriting operations. The derivatives are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models using appropriate discount rates. The selection of an appropriate discount rate is judgmental and is the ~~new issue market.~~most significant unobservable input used in the valuation of these derivatives. A significant increase (decrease) in this input in isolation could result in a significantly lower (higher) fair value measurement for the derivative contract. As the significant inputs used to price ~~the municipal bonds~~these derivatives are ~~observable market inputs, municipal bonds are classified within Level 2.~~

~~Other investments~~ ~~— Includes both quoted and unquoted investments. The fair value of our quoted equity investment is obtained from~~unobservable, 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 investments in start-up insurance related companies. 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 investments in the start-up insurance related companies 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~~contracts are classified as Level 2.3.

~~Loan to related party~~ ~~— The carrying value reported~~

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in ~~the Condensed Consolidated Balance Sheets for this financial instrument approximates its fair value~~thousands of U.S. dollars, except share and ~~it is included in the Level 2 hierarchy.~~per share data)

~~Senior notes~~ —~~The amount reported in the Condensed Consolidated Balance Sheets for these financial instruments represents the carrying value~~5. Fair 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.~~Financial Instruments (continued)

(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~~valuation methodology whenever 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 trading markets and the lowest priority to unobservable inputs that reflect ~~the Company’s~~ significant market assumptions.

~~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~~2022 and December 31, ~~2016, we~~2021, the Company classified ~~our~~its financial instruments measured at fair value on a recurring basis in the following valuation hierarchy:

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 %


September 30, 2022	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
Fixed maturities
U.S. treasury bonds	$	58,223	$	—	$	—	$	—	$	58,223
U.S. agency bonds – mortgage-backed	—		66,192		—		—		66,192
Collateralized mortgage-backed bonds	—		6,802		—		—		6,802
Non-U.S. government bonds	—		10,981		—		—		10,981
Collateralized loan obligations	—		144,533		—		—		144,533
Corporate bonds	—		85,242		—		—		85,242

Equity securities	598		—		17,305		24,697		42,600
Other investments	—		—		—		88,021		88,021
Total investments	$	58,821	$	313,750	$	17,305	$	112,718	$	502,594
As a percentage of total assets	3.0%		15.8%		0.9%		5.7%		25.4%

Derivative liability on retroactive reinsurance	$	—	$	—	$	9,035	$	—	$	9,035


December 31, 2021	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
Fixed maturities
U.S. treasury bonds	$	59,879	$	—	$	—	$	—	$	59,879
U.S. agency bonds – mortgage-backed	—		98,790		—		—		98,790
Collateralized mortgage-backed bonds	—		15,537		—		—		15,537
Non-U.S. government bonds	—		3,276		—		—		3,276
Collateralized loan obligations	—		179,021		—		—		179,021
Corporate bonds	—		240,642		—		—		240,642

Equity securities	1,174		—		5,094		17,735		24,003
Other investments	—		—		1,000		73,746		74,746
Total investments	$	61,053	$	537,266	$	6,094	$	91,481	$	695,894
As a percentage of total assets	2.6%		23.1%		0.3%		3.9%		29.9%

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

The Pricing Service was utilized to estimate fair value measurements for ~~approximately 99.9%~~98.8% and ~~98.8%~~99.0% of ~~its~~our fixed maturities at September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, 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 2.2 within the 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)

At September 30, ~~2017~~2022 and December 31, ~~2016, 0.1%~~2021, approximately 1.2% and ~~1.2%~~1.0%, respectively, of ~~the~~our fixed maturities ~~are~~were valued using the market approach. At ~~each~~September 30, 2022, one security or $4,411 (2021 - one security or $6,225) of ~~those dates, a total of three securities, or approximately $6,463 and $56,674, respectively, of~~our fixed maturity investment portfolio classified as 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~~2022 and December 31, ~~2016, we have~~2021, the Company has not adjusted any pricing provided to usit based on the review performed by ~~our~~its investment managers.

During the nine months ended September 30, 2021, the Company transferred its equity investment in an insurtech start-up company focused on technological advancement in the automobile insurance industry out of Level 3 within the fair value hierarchy and into Level 1 due to the recent completion of its initial public offering. There were no transfers to or from Level 3 during the nine months ended September 30, 2022.

At September 30, 2022, the Company holds Level 3 financial instruments which include privately held equity investments of $17,305 (December 31, 2021 - $6,094) and derivative liability on retroactive reinsurance of $9,035. The fair value of privately held equity investments are estimated using quarterly unaudited capital or financial statements or recent private market transactions, where applicable. The fair value of derivative instruments are determined using a discounted cash flow model in which the Company examines current market conditions, historical results as well as contract specific information that may impact future cash flows in order to assess the reasonableness of inputs used in the valuation model. Due to significant unobservable inputs in these valuations, the Company classifies the fair values as Level 3 within the fair value hierarchy.

The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at September 30, 2022:

Fair Value

Valuation Technique

Unobservable Inputs

Range

Private equity investments

6,860

Quarterly financial statements

Estimated maturity dates

1.0 years

3.0 years

Others including start-ups

10,445

Recent market transactions

Liquidity discount rates

Total Level 3 investments

17,305

Derivative liability on retroactive reinsurance

9,035

Discounted cash flows

Duration matched discount rates

2.0%

3.0%

The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three and nine months ended September 30, 2022 and 2021. The Company includes any related interest and dividend income in net investment income and are excluded from the reconciliation in the table below:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Balance - beginning of period	$	15,194	$	6,094	$	6,094	$	2,844
Sales	—		—		(1,000)		—
Net unrealized gains	111		—		3,770		—
Purchases	2,000		—		8,441		4,250
Transfers out of Level 3	—		—		—		(1,000)
Total Level 3 investments - end of period	$	17,305	$	6,094	$	17,305	$	6,094

(d) Financial Instruments Disclosed, But Not Carried, at Fair Value

The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments related to insurance contracts.

At September 30, 2022, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable, loan to related party, liability for securities purchased and certain other assets and liabilities approximate fair values due to their inherent short duration. As these financial instruments are not actively traded, the fair values of these financial instruments are classified as Level 2.

The investments made by direct lending entities are carried at cost less impairment, if any, which approximates fair value. The fair value estimates of these investments are not based on observable market data and, as a result, are classified as Level 3.

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~~fair values of the Senior Notes (as defined in "Note 7. Long-Term Debt") are based on indicative market pricing obtained from a ~~Pricing Service to estimate~~third-party pricing service which uses observable market inputs, and therefore the fair values of these liabilities are classified as Level 2. The following table presents the respective carrying value and fair value ~~measurement~~ for the ~~quoted equity~~Senior Notes as at September 30, 2022 and December 31, 2021:


	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value




Senior Notes - MHLA – 6.625%	$	110,000	$	66,880	$	110,000	$	94,820
Senior Notes - MHNC – 7.75%	152,500		108,885		152,500		140,300
Total Senior Notes	$	262,500	$	175,765	$	262,500	$	235,120

6. Shareholders' Equity

a)Common Shares

At September 30, 2022, the aggregate authorized share capital of the Company is 150,000,000 shares from which 93,414,080 common shares were issued, of which 87,161,499 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding. The remaining 37,985,920 shares are undesignated at September 30, 2022. Excluding the preference shares held by Maiden Reinsurance, a total of 4,786,884 preference shares are held by non-affiliates.

b)Preference Shares

On March 3, 2021 and May 6, 2021, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment ~~reflecting~~guidelines, of up to $100,000 and $50,000, respectively, of the ~~closing price quoted~~ Company's preference shares from time to time at market prices in open market purchases or as may be privately negotiated. The authorizations are collectively referred to as the "2021 Preference Share Repurchase Program".

The following table shows the summary of the Company's preference shares repurchases madefor the ~~final trading day of the period~~nine months ended September 30, 2022 and ~~is included in Level 1. The quoted equity investment was sold in the third quarter of 2017.~~

There have not been any transfers between Level 1 and Level 2 and there has not been any transfers to or from Level 3 during the periods represented by these Condensed Consolidated Financial Statements.

~~(c) Level 3 Financial Instruments~~

The Company also has investments of $1,500 (December 31, 2016 - $1,000) in start-up insurance related companies, 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 and 2016, there have been~~2021; no ~~transfers into or out of Level 3.~~preference shares were repurchased during the three months ended September 30, 2022:

~~(d) Financial Instruments not measured at Fair Value~~


	For the Three Months Ended September 30, 2021			For the Nine Months Ended September 30, 2022						For the Nine Months Ended September 30, 2021
		Number of shares purchased		Average price of shares purchased		Number of shares purchased		Average price of shares purchased			Number of shares purchased		Average price of shares purchased

Series A		135,353		$	13.51	435,639		$	5.27		3,519,093		$	14.74
Series C		241,466		13.42		625,742		7.08			2,917,244		14.44
Series D		181,817		13.34		520,128		6.26			2,639,336		14.45
Total		558,636		13.42		1,581,509		6.31			9,075,673		14.56

Total price paid		$	7,495			$	9,983				$	132,153
Gain on purchase		$	6,004			$	28,233				$	87,168

The following table ~~presents~~shows the ~~fair value and carrying value~~summary of changes for the Company's preference shares outstanding (including the total of the ~~financial instruments not measured~~Company's preference shares held by Maiden Reinsurance pursuant to the cash tender offer in December 2020 and the 2021 Preference Share Repurchase Program) at ~~fair value:~~September 30, 2022:


As of September 30, 2022	Series A		Series C		Series D		Total
Outstanding shares issued by Maiden Holdings	6,000,000		6,600,000		6,000,000		18,600,000







Less: Total shares held by Maiden Reinsurance	4,499,950		4,855,972		4,457,194		13,813,116
Total shares held by non-affiliates	1,500,050		1,744,028		1,542,806		4,786,884
Percentage held by Maiden Reinsurance	75.0	%	73.6	%	74.3	%	74.3	%

The Company's remaining authorization for preference share repurchases was $3,861 at September 30, 2022. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for more details on preference shares. The Company has announced its intention to exchange all outstanding preference shares for the Company's common shares subsequent to September 30, 2022. Please see "Note 14. Subsequent Events" for details.

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. Shareholders' Equity (continued)

~~6. Long-Term Debt~~c)Treasury Shares

~~Senior Notes~~

~~Maiden Holdings and its wholly owned subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA"), both have an outstanding public debt offering~~On February 21, 2017, the Company's Board of ~~senior notes which were issued in 2016 and 2013, respectively, (the "Senior Notes"). The 2013 Senior Notes issuance made by Maiden NA is fully and unconditionally guaranteed by~~Directors approved the ~~Company. The Senior Notes are unsecured and unsubordinated obligation~~repurchase of up to $100,000 of the ~~Company.~~

~~On June 27, 2017, we fully redeemed all~~Company's common shares from time to time at market prices. The Company has a remaining authorization of ~~the 2012 Senior Notes using a portion of the proceeds from the Preference Shares - Series D issuance (see related discussion in~~ ~~"Note 11. Shareholders' Equity"). The 2012 Senior Notes were redeemed~~$74,245 for common share repurchases 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~~2022 (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 for~~2021 - $74,245). No repurchases were made during the three and nine months ended September 30, ~~2017 was $4,776~~2022 and ~~$18,218, respectively, (2016 - $6,776 and $21,049, respectively) of which $1,342 and $1,453 was accrued at~~2021 under the common share repurchase plan.

During the three months ended September 30, ~~2017~~2021, the Company repurchased a total of 21,509 common shares at an average price per share of $3.43 from employees, which represent withholding in respect of tax obligations on the vesting of both non-performance-based and ~~December 31, 2016, respectively. The issuance costs related to the Senior Notes~~discretionary performance-based restricted shares. There were ~~capitalized and are being amortized over the life of the Senior Notes. The amount of amortization expense for~~no repurchases made during the three ~~and~~months ended September 30, 2022. During the nine months ended September 30, ~~2017 was $53~~2022, the Company repurchased 403,716 common shares (2021 - 821,057) at an average price per share of $2.50 (2021 - $2.96) from employees, which represent withholding in respect of tax obligations on the vesting of both non-performance-based and ~~$212, respectively, (2016 - $80 and $265, respectively).~~discretionary performance-based restricted shares.

d)Accumulated Other Comprehensive Income (Loss)

The following tables set forth financial information regarding the changes in the balances of each component of AOCI:


For the Three Months Ended September 30, 2022	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	(45,266)	$	6,326	$	(38,940)
Other comprehensive (loss) income before reclassifications	(14,811)		2,246		(12,565)
Amounts reclassified from AOCI to net income, net of tax	(48)		—		(48)
Net current period other comprehensive (loss) income	(14,859)		2,246		(12,613)


Ending balance, Maiden shareholders	$	(60,125)	$	8,572	$	(51,553)

For the Three Months Ended September 30, 2021	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	23,632	$	(17,909)	$	5,723
Other comprehensive (loss) income before reclassifications	(14,611)		6,036		(8,575)
Amounts reclassified from AOCI to net income, net of tax	(2,007)		—		(2,007)
Net current period other comprehensive (loss) income	(16,618)		6,036		(10,582)


Ending balance, Maiden shareholders	$	7,014	$	(11,873)	$	(4,859)
For the Nine Months Ended September 30, 2022	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	(2,693)	$	(9,522)	$	(12,215)
Other comprehensive (loss) income before reclassifications	(51,736)		18,094		(33,642)
Amounts reclassified from AOCI to net income, net of tax	(5,696)		—		(5,696)
Net current period other comprehensive (loss) income	(57,432)		18,094		(39,338)


Ending balance, Maiden shareholders	$	(60,125)	$	8,572	$	(51,553)
For the Nine Months Ended September 30, 2021	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	49,357	$	(25,500)	$	23,857
Other comprehensive (loss) income before reclassifications	(35,311)		13,627		(21,684)
Amounts reclassified from AOCI to net income, net of tax	(7,032)		—		(7,032)
Net current period other comprehensive (loss) income	(42,343)		13,627		(28,716)


Ending balance, Maiden shareholders	$	7,014	$	(11,873)	$	(4,859)

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

7.Senior Notes

At September 30, 2022 and December 31, 2021, Maiden Holdings had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") and its wholly owned subsidiary, Maiden Holdings North America, Ltd. ("Maiden NA") had outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") (collectively "Senior Notes"). The 2013 Senior Notes issued by Maiden NA are fully and unconditionally guaranteed by Maiden Holdings. The Senior Notes are unsecured and unsubordinated obligations of the Company.

The following tables detail the issuances of Senior Notes outstanding at September 30, 2022 and December 31, 2021:


September 30, 2022	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,420			3,564			6,984
Carrying value	$	106,580		$	148,936		$	255,516

December 31, 2021	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,463			3,690			7,153
Carrying value	$	106,537		$	148,810		$	255,347

Other details:
Original debt issuance costs	$	3,715		$	5,054
Maturity date	June 14, 2046			December 1, 2043
Earliest redeemable date (for cash)	June 14, 2021			December 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, 2022 was $4,776 and $14,329, respectively (2021 - $4,776 and $14,329, respectively), of which $1,342 was accrued at both September 30, 2022 and December 31, 2021, respectively. The issuance costs related to the Senior Notes were capitalized and are being amortized over the effective life of the Senior Notes. The amortization expense for the three and nine months ended September 30, 2022 was $57 and $169, respectively (2021 - $56 and $166, respectively).

Under the terms of the 2013 Senior Notes, the 2013 Senior Notes can be redeemed, in whole or in part, at Maiden NA's option at any time and from time to time, until maturity at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden NA is required to give at least thirty days and not more than sixty days notice prior to the redemption date.

Under the terms of the 2016 Senior Notes, the 2016 Senior Notes can be redeemed, in whole or in part, at Maiden Holdings' option at any time and from time to time, until maturity at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden Holdings is required to give at least thirty days and not more than sixty days notice prior to the redemption date.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

8. Reinsurance

The Company uses reinsurance and retrocessional agreements ("ceded reinsurance") to mitigate volatility, reduce its exposure to certain risks and provide capital support. Ceded reinsurance provides for the recovery of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders. The Company remains liable to the extent that any of its reinsurers or retrocessionaires fails to meet their obligations. Loss and LAE incurred and premiums earned are reported after deduction for ceded reinsurance. In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these agreements, the Company would not realize the full value of the reinsurance recoverable balances.

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the nine months ended September 30, 2022 and 2021 was as follows:


For the Nine Months Ended September 30,	2022		2021
Premiums written
Direct	$	17,383	$	16,181
Assumed	(18,834)		(8,316)
Ceded	(464)		(347)
Net	$	(1,915)	$	7,518
Premiums earned
Direct	$	17,332	$	17,186
Assumed	6,942		24,103
Ceded	(458)		(1,183)
Net	$	23,816	$	40,106
Loss and LAE
Gross loss and LAE	$	22,511	$	6,132
Loss and LAE ceded	(494)		1,414
Net	$	22,017	$	7,546

The Company's reinsurance recoverable on unpaid losses balance as at September 30, 2022 was $547,975 (December 31, 2021 - $562,845) presented in the Condensed Consolidated Balance Sheets. At September 30, 2022 and December 31, 2021, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.

On December 27, 2018, Cavello Bay Reinsurance Limited ("Cavello") and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S. treaty reinsurance business held by Maiden Reinsurance were 100.0% retroceded to Cavello in exchange for a ceding commission. The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $67,181 at September 30, 2022 (December 31, 2021 - $69,006).

On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") pursuant to which Cavello assumed the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $2,178,535 retention up to $600,000, in exchange for a retrocession premium of $445,000. The $2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018. The LPT/ADC Agreement provides Maiden Reinsurance with $155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018. The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance. Cumulative ceded losses exceeding $445,000 are recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves in proportion to cumulative losses collected over the estimated ultimate reinsurance recoverable. The amount of the deferral is recalculated each period based on loss payments and updated estimates. Consequently, cumulative adverse development subsequent to December 31, 2018 may result in significant losses from operations until periods when the deferred gain is recognized as a benefit to earnings. As of September 30, 2022, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $480,138 while the deferred gain liability under the LPT/ADC Agreement was $35,138 (December 31, 2021 - $490,860 and $45,860, respectively). Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be in 2025.

Cavello provided collateral in the form of a letter of credit in the amount of $445,000 to AmTrust under the LPT/ADC Agreement. Cavello is subject to additional collateral funding requirements as explained in "Note 10. Related Party Transactions". As of September 30, 2022, the amount of collateral required was $424,588. Under the terms of the LPT/ADC Agreement, the covered losses associated with the Commutation and Release Agreement with AmTrust are eligible to be covered but recoverable only when such losses are paid or settled by AII or its affiliates, provided such losses and other related amounts shall not exceed $312,786. Cavello's parent company, Enstar, has credit ratings of BBB from both Standard & Poor's and Fitch Ratings at September 30, 2022.

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 rates of 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 the 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, claims handling, 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 the Company's contracts. While reserves are mostly reviewed on a contract by contract basis, paid loss 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). In cases where the Company uses underwriting year information, reserves are subsequently allocated to the respective accident year. The reserve for loss and LAE consists of:


	September 30, 2022		December 31, 2021
Reserve for reported loss and LAE	$	692,881	$	851,950
Reserve for losses incurred but not reported ("IBNR")	453,203		637,423
Reserve for loss and LAE	$	1,146,084	$	1,489,373

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,	2022		2021
Gross loss and LAE reserves, January 1	$	1,489,373	$	1,893,299
Less: reinsurance recoverable on unpaid losses, January 1	562,845		592,571
Net loss and LAE reserves, January 1	926,528		1,300,728
Net incurred losses related to:
Current year	27,510		31,259
Prior years	(5,493)		(23,713)
	22,017		7,546
Net paid losses related to:
Current year	(334)		(17,137)
Prior years	(319,132)		(288,202)
	(319,466)		(305,339)
Change in deferred gain on retroactive reinsurance	12,024		24,296
Assumed retroactive reinsurance business	7,580		—
Effect of foreign exchange rate movements	(50,574)		(21,332)
Net loss and LAE reserves, September 30	598,109		1,005,899
Reinsurance recoverable on unpaid losses, September 30	547,975		561,627
Gross loss and LAE reserves, September 30	$	1,146,084	$	1,567,526

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

~~During~~ The Company recognized adverse prior year loss development of$834 for the three months ended September 30, 2022 and favorable prior year loss development of $5,493 for the nine months ended September 30, ~~2017, the Company recognized approximately $77,670~~2022 (2021 - favorable $5,352 and ~~$150,534, respectively (2016 - $12,446 and $41,868,~~$23,713, respectively) ~~of 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, ~~adverse~~there was favorable prior year loss development ~~was $7,878~~of $590 and ~~$39,486~~$1,975 for the three and nine months ended September 30, ~~2017, respectively (2016~~2022 (2021 - ~~$10,408~~favorable $1,676 and ~~$37,404,~~$2,613, respectively) ~~which was largely due to a higher than expected~~. Prior year loss ~~emergence emanating largely from facultative commercial auto as well as a handful of specific contracts across several lines of business.~~

~~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~~2022 was primarily due to favorable reserve development in German Auto Programs 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~~GLS policies partly offset by adverse development ~~of $8,665 and $10,176~~in European Capital Solutions. Prior year loss development for the three and nine months ended September 30, ~~2017, respectively, (2016 - $45 and $2,940, respectively)~~2021 was due to ~~increased reserves~~favorable reserve development in ~~the remaining run–off litigated U.S. E&S property claims~~German Auto Programs, European Capital Solutions and ~~increased reserves in the run–off of the NGHC Quota Share Reinsurance Agreement.~~other runoff business.

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, net adverse prior year loss development was $1,424 during the three months ended September 30, 2022, compared to favorable prior year loss development of $3,676 for the same period in 2021. Net adverse prior year loss development for the three months ended September 30, 2022 was driven by unfavorable movements in European Hospital Liability due to higher than expected loss emergence in Italian Hospital Liability policies as well as the agreed exit cost of $3,666 (€3,444) for the commutation of French Hospital Liability policies as described in "Note 10. Related Party Transactions"; partly offset by favorable runoff of Workers Compensation business. Net favorable prior year loss development for the three months ended September 30, 2021 was experienced in Workers Compensation and Commercial Auto Liability.

In the AmTrust Reinsurance segment, net favorable prior year loss development was $3,518 during the nine months ended September 30, ~~2017,~~2022, compared to net favorable prior year loss development of $21,100 for the ~~Company recorded an estimate~~same period in 2021. Net favorable prior year loss development of ~~$20,000~~$3,518 during the nine months ended September 30, 2022 included $5,346 of favorable reserve adjustments for estimated surcharges on Workers' Compensation policies and inuring AmTrust reinsurance for programs in ~~losses from Hurricanes Harvey~~Specialty Risk and ~~Irma, predominantly~~Extended Warranty cessions ("AmTrust Cession Adjustments"). Excluding the AmTrust Cession Adjustments, there was adverse development of $1,828 for the nine months ended September 30, 2022 driven by unfavorable movements in European Hospital Liability due to higher than expected loss emergence in Italian Hospital Liability policies as well as the agreed exit cost of $3,666 (€3,444) for the commutation of French Hospital Liability policies as described in "Note 10. Related Party Transactions"; partly offset by favorable runoff of Workers Compensation business. Prior year favorable loss development in 2021 in Workers Compensation and Commercial Auto Liability was partly offset by adverse development in Hospital Liability.

The change in the ~~Diversified segment largely from~~deferred gain on retroactive reinsurance was $12,024 for the ~~property~~nine months ended September 30, 2022 (2021 - $24,296). This change included a decrease in the deferred gain liability and ~~casualty lines.~~related reinsurance recoverable on unpaid losses under the LPT/ADC Agreement with Cavello of $10,722 for the nine months ended September 30, 2022 (2021 - $24,296) due to favorable development on loss reserves covered under the LPT/ADC Agreement. The ~~Company expects no impact from~~deferred gain on retroactive reinsurance under the ~~Mexico earthquakes or Hurricane Maria.~~LPT/ADC Agreement represents the cumulative adverse development for covered risks in the AmTrust Quota Share as of September 30, 2022 and December 31, 2021. Amortization of the deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be in 2025.

10. Related Party Transactions

The Founding Shareholders of the Company ~~are~~were 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 the late Michael Karfunkel) owns or controls approximately ~~8.0%~~7.7% of the Company's outstanding common shares ~~of the Company~~ and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately ~~7.6%~~7.3% of the Company's outstanding ~~shares of the Company as at September 30, 2017.~~common shares. George Karfunkel ~~now~~ owns or controls less than 5.0% of the Company's outstanding ~~shares of the Company as at September 30, 2017 so there is no longer a public filing requirement.~~common shares. 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%~~55.2% of the ~~outstanding shares~~ownership interests of Evergreen Parent LP, the ultimate parent 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% of the outstanding common shares of NGHC. Barry Zyskind is the non-executive chairman of NGHC.

~~AmTrust~~

The following describes transactions that have transpired 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~~("Master Agreement"), by which they caused Maiden ~~Bermuda, a wholly owned subsidiary of the Company,~~Reinsurance and ~~AmTrust's Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. ("AII"),~~AII to enter into ~~a quota share reinsurance agreement (the "Reinsurance Agreement")~~the AmTrust Quota Share by which AII ~~retrocedes~~retroceded to Maiden ~~Bermuda~~Reinsurance 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~~receive a ceding commission of 31% of ceded written premiums. On June 11, 2008, Maiden ~~Bermuda~~Reinsurance and AII amended the ~~Reinsurance Agreement~~AmTrust Quota Share to add Retail Commercial Package Business to the Covered ~~Business.~~Business (as defined in the AmTrust Quota Share). 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~~Effective July 1, 2018, the amount AEL ceded to Maiden ~~Bermuda elects~~Reinsurance was reduced to so terminate the Reinsurance Agreement by giving written notice to the other party 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.20%.

~~Additionally,~~Effective July 1, 2013, for the Specialty Program portion of Covered Business only, AII ~~will be~~was responsible for ultimate net loss otherwise recoverable from Maiden ~~Bermuda~~Reinsurance to the extent that the loss ratio to Maiden ~~Bermuda,~~Reinsurance, 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% ("Loss Corridor"). Above and below the ~~defined corridor,~~Loss Corridor, Maiden ~~Bermuda will continue~~Reinsurance continued to reinsure losses at its proportional 40% share ~~per~~of the AmTrust Quota Share. Effective July 31, 2019, the Loss Corridor was amended such that the maximum amount covered is $40,500, the amount calculated by Maiden Reinsurance for the Loss Corridor coverage as of March 31, 2019. Any development above this maximum amount will be subject to the coverage of the LPT/ADC Agreement.

Effective January 1, 2019, Maiden Reinsurance and AII entered into a partial termination amendment ("Partial Termination Amendment") which amended the AmTrust Quota Share. The Partial Termination Amendment provided for the cut-off of the ongoing and unearned premium of AmTrust’s Small Commercial Business, comprising workers’ compensation, general liability, umbrella liability, professional liability (including cyber liability) insurance coverages, and U.S. Specialty Risk and Extended Warranty ("Terminated Business") as of December 31, 2018. Under the Partial Termination Amendment, the ceding commission payable by Maiden Reinsurance for its remaining in-force business immediately prior to January 1, 2019 increased by five percentage points with respect to in-force remaining business (excluding Terminated Business) and related unearned premium as of January 1, 2019. The Partial Termination Amendment resulted in Maiden Reinsurance returning $647,980 in unearned premium to AII, or $436,760 net of applicable ceding commission and brokerage during the second quarter of 2019.

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)

Subsequently, on January 30, 2019, Maiden Reinsurance and AII agreed to terminate the remaining business subject to the AmTrust Quota Share on a run-off basis effective as of January 1, 2019.

Effective July 31, 2019, Maiden Reinsurance and AII entered into a Commutation and Release Agreement which provided for AII to assume all reserves ceded by AII to Maiden Reinsurance with respect to its proportional 40% share of the ultimate net loss under the AmTrust Quota Share related to the commuted business including: (a) all losses incurred in Accident Year 2017 and Accident Year 2018 under California workers' compensation policies and as defined in the AmTrust Quota Share ("Commuted California Business"); and (b) all losses incurred in Accident Year 2018 under New York workers' compensation policies ("Commuted New York Business"), and together with the Commuted California Business ("Commuted Business") in exchange for the release and full discharge of Maiden Reinsurance's obligations to AII with respect to the Commuted Business. The Commuted Business excludes any business classified by AII as Specialty Program or Specialty Risk business.

Maiden Reinsurance paid $312,786 ("Commutation Payment"), which is the sum of the net ceded reserves in the amount of $330,682 with respect to the Commuted Business as of December 31, 2018 less payments in the amount of $17,896 made by Maiden Reinsurance with respect to the Commuted Business from January 1, 2019 through July 31, 2019. The Commutation Payment was settled on August 12, 2019 and Maiden Reinsurance paid AII approximately $6,335 in interest related to the Commutation Payment premium, calculated at the rate of 3.30% per annum from January 1, 2019 through August 12, 2019.

AII and Maiden Reinsurance also agreed that as of July 31, 2019, the AmTrust Quota Share was deemed amended as applicable so that the Commuted Business is no longer included as part of Covered Business under the AmTrust Quota Share.

On January 30, 2019, in connection with the termination of the reinsurance agreement described above, the Company and AmTrust entered into a second amendment to the Master Agreement between the parties, originally entered into on July 3, 2007, to remove the provisions requiring AmTrust to reinsure business with the Company.

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

Effective April 1, 2011, Maiden ~~Bermuda,~~Reinsurance entered into ~~a quota share reinsurance contract~~the European Hospital Liability Quota Share with ~~AmTrust Europe Limited ("AEL")~~AEL and ~~AmTrust International Underwriters Limited ("AIUL"), both wholly owned subsidiaries of AmTrust.~~AIU DAC. Pursuant to the terms of the ~~contract,~~European Hospital Liability Quota Share, Maiden ~~Bermuda~~Reinsurance 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~~European Hospital Liability Quota Share 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~~Reinsurance paid a ceding commission of 5%~~. The agreement has been renewed through March 31, 2018 and can be terminated at any April 1 by either party~~ on ~~four months notice.~~contracts assumed under the European Hospital Liability Quota Share.

Effective July 1, 2016, the ~~contract~~European Hospital Liability Quota Share was amended such that Maiden ~~Bermuda~~Reinsurance 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~~Thereafter, on January 30, 2019, Maiden Reinsurance, AEL and AIU DAC agreed to terminate the European Hospital Liability Quota Share on a run-off basis effective as of January 1, 2019.

Effective July 1, 2022, Maiden Reinsurance and AIU DAC entered into an agreement ("Commutation Agreement") which provided for AIU DAC to assume all reserves ceded by AIU DAC to Maiden Reinsurance with respect to AIU DAC’s French Medical Malpractice exposures for underwriting years 2012 through 2018 reinsured by Maiden Reinsurance under the European Hospital Liability Quota Share. In accordance with the Commutation Agreement, Maiden Reinsurance paid $31,291 (€29,401) to AIU DAC, which is the sum of net ceded reserves of $27,625 (€25,956) and an agreed exit cost of $3,666 (€3,444). As a result of the Commutation Agreement, Maiden Reinsurance reduced its exposure to AmTrust's Hospital Liability business, however, it continues to have exposure to Italian medical malpractice liabilities under the European Hospital Liability Quota Share.

The table below shows the effect of both of these quota share arrangements with AmTrust on the Company's Condensed Consolidated Income Statements for the three and nine months ended September 30, ~~2017,~~2022 and 2021, respectively:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Gross and net premiums written	$	(805)	$	1,137	$	(18,520)	$	(3,082)
Net premiums earned	5,319		7,509		3,804		19,383
Net loss and LAE	(15,461)		(9,960)		(19,072)		(4,330)
Commission and other acquisition expenses	(2,004)		(2,852)		(2,127)		(7,486)

Collateral provided to AmTrust

a) AmTrust Quota Share

To provide AmTrust's U.S. insurance subsidiaries with credit for reinsurance on their statutory financial statements, AII, as the ~~Company recorded approximately $138,171 and $460,667 (2016 - $163,336 and $447,767, respectively)~~direct reinsurer of ~~commission expense as a result~~AmTrust's insurance subsidiaries, established trust accounts ("Trust Accounts") for their benefit. Maiden Reinsurance has provided appropriate collateral to secure its proportional share under the AmTrust Quota Share of ~~both of these quota share arrangements with AmTrust.~~AII's

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 Company, through a subsidiary, entered into a quota share reinsurance agreement with Technology Insurance Company, Inc. ("Technology"), a subsidiary 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 for the three and nine months ended September 30, 2017, respectively (2016 - $nil and $12, respectively).

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).

~~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~~which can include (a) assets loaned by Maiden ~~Bermuda~~Reinsurance to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden ~~Bermuda~~Reinsurance for deposit into the Trust Accounts, or (c) a letter of credit obtained by Maiden ~~Bermuda~~Reinsurance and delivered to an AmTrust subsidiary on AII's ~~behalf, or (d) premiums withheld by an AmTrust subsidiary at~~behalf. Maiden ~~Bermuda's request in lieu of remitting such premiums to AII. Maiden Bermuda~~Reinsurance may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden ~~Bermuda's~~Reinsurance's proportionate share of its obligations under the ~~Reinsurance Agreement with AII.~~

~~Maiden Bermuda satisfied its~~AmTrust Quota Share. The collateral requirements under the ~~Reinsurance Agreement~~AmTrust Quota Share with AII was satisfied as follows:

•by lending funds ~~in the amount~~ of $167,975 at September 30, ~~2017~~2022 and December 31, ~~2016~~2021 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 maturity date with respect to each advance is ten years from the date the advance was made.~~ This loan was assigned by AII to AmTrust effective December 31, 2014 and is carried at cost. Interest is payable at a rate equivalent to the ~~one-month LIBOR~~Federal Funds Effective Rate ("Fed Funds") plus 90200 basis points per ~~annum;~~annum. Interest income on the loan was $1,771 and $3,808 for the three and nine months ended September 30, 2022, respectively (2021 - $885 and $2,611, respectively) and the effective yield was 4.2% and 3.0% for the respective periods (2021 - 2.1% and 2.1%).

•on January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust amended the Loan Agreement between Maiden Reinsurance, AmTrust and AII, originally entered into on November 16, 2007, by extending the maturity date to January 1, 2025 and specifies that due to the termination of the AmTrust Quota Share, no further loans or advances may be made pursuant to the Loan Agreement;

•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~~2022 was ~~approximately $3,245,369~~$104,453 (December 31, ~~2016~~2021 - ~~$2,766,032)~~$246,874) and the accrued interest was ~~$21,288~~$589 (December 31, ~~2016~~2021 - ~~$20,420)~~$1,171). Please refer to "Note 4. (e) Investments" for additional ~~information.~~information;

~~b) European Hospital Liability~~•on January 11, 2019, a portion of the existing Trust Accounts used for collateral on the AmTrust Quota Share

~~AEL requested that Maiden Bermuda provide collateral~~ were converted to ~~secure its proportional share under~~a funds withheld arrangement. The Company transferred $575,000 to AmTrust as a funds withheld receivable which has an annual interest rate for 2022 of 2.1%, subject to annual adjustment. The annual interest rate was 1.80% for 2021. At September 30, 2022, 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 Agreementfunds withheld balance was $490,603 (December 31, 2021 - $575,000) and the ~~European Hospital Liability Quota Share agreement for a fee equal to 1.25% of~~accrued interest was $2,597 (December 31, 2021 - $2,609). The interest income on 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 $5,642funds withheld receivable was $2,597 and ~~$18,662 of reinsurance brokerage expense~~$8,585 for the three and nine months ended September 30, ~~2017,~~2022, respectively ~~(2016~~(2021 - ~~$6,652~~$2,609 and ~~$18,330,~~$7,741, respectively).

Pursuant to the terms of the LPT/ADC Agreement, Maiden Reinsurance, Cavello and ~~deferred reinsurance brokerage at September 30, 2017~~AmTrust and certain of ~~$15,476 (December 31, 2016 - $14,395) as~~its affiliated companies entered into a Master Collateral Agreement (“MCA”) to define and enable the operation of collateral provided under the AmTrust Quota Share. Under the MCA, Cavello provided letters of credit on behalf of Maiden Reinsurance to AmTrust in an amount representing Cavello’s obligations under the LPT/ADC Agreement. Because these letters of credit replaced other collateral previously provided directly by Maiden Reinsurance to AmTrust, the MCA coordinates the collateral protection that will be provided to AmTrust to ensure that no gaps in collateral funding occur by operation of the LPT/ADC Agreement and related MCA. As a result of entering into both the LPT/ADC Agreement and the MCA, certain post-termination endorsements (“PTEs”) to the AmTrust Quota Share between AII and Maiden Reinsurance were required.

Effective July 31, 2019, the PTEs: i) enable the operation of both the LPT/ADC Agreement and MCA by making provision for certain forms of collateral, including letters of credit provided by Cavello on Maiden Reinsurance’s behalf, and further defines the permitted use and return of collateral; and ii) increase the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 105% of its obligations, subject to a minimum excess funding requirement of $54,000, as may be mutually amended by the parties from time to time. Under certain defined conditions, Maiden Reinsurance may be required to increase this ~~agreement.~~funding percentage to 110%.

~~The Company~~Effective March 16, 2020, Maiden Reinsurance discontinued as a Bermuda company and completed its re-domestication to the State of Vermont. Bermuda is a Solvency II equivalent jurisdiction and the State of Vermont is not such a jurisdiction; therefore, the collateral provided under the respective agreements with AmTrust subsidiaries was strengthened to reflect the impact of the re-domestication concurrent with the date of Maiden Reinsurance’s re-domestication to Vermont. Maiden Reinsurance and AmTrust agreed to: 1) amend the AmTrust Quota Share pursuant to Post Termination Endorsement No. 2 effective March 16, 2020; and 2) amend the European Hospital Liability Quota Share pursuant to Post Termination Endorsement No. 1 effective March 16, 2020.

Pursuant to the terms of Post Termination Endorsement No. 2 to the AmTrust Quota Share, Maiden Reinsurance strengthened the collateral protection provided by Maiden Reinsurance to AII by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to 110% of its obligations, subject to a minimum excess funding requirement of $54,000, as may be mutually amended by the parties from time to time. Post Termination Endorsement No. 2 also ~~paid brokerage fees~~sets forth conditions by which the funding percentage will be reduced and the sequence of how collateral will be utilized as obligations, as defined under the AmTrust Quota Share, are satisfied.

Pursuant to ~~AmTrust's subsidiary, AmTrust North America,~~the terms of ~~$54~~Post Termination Endorsement No. 1 to the European Hospital Liability Quota Share, Maiden Reinsurance strengthened the collateral protection provided by Maiden Reinsurance to AEL and ~~$55~~AIU DAC by increasing the required funding percentage for Maiden Reinsurance under the ~~three~~collateral arrangements between the parties to the greater of 120% of the Exposure (as defined therein) and ~~nine months ended September 30, 2017 (2016 - $41~~the amount of security required to offset the increase in the Solvency Capital Requirement (“SCR”) that results from the changes in the SCR which arise out of Maiden Reinsurance's re-domestication as compared to the SCR calculation if Maiden Reinsurance had remained domesticated in a Solvency II equivalent jurisdiction with a solvency ratio above 100% and ~~$42), respectively, for acting as insurance intermediary in relation~~provided collateral equivalent to ~~certain insurance placements.~~100% of the Exposure.

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)

b) European Hospital Liability Quota Share

Collateral has been provided to both AEL and AIU DAC under the European Hospital Liability Quota Share. For AEL, the amount of the collateral held in reinsurance trust accounts at September 30, 2022 was $197,737 (December 31, 2021 - $244,488) and the accrued interest was $710 (December 31, 2021 - $1,273). For AIU DAC, the Company utilized funds withheld to satisfy its collateral requirements which was used to settle the Commutation Agreement on September 12, 2022.

Therefore, at September 30, 2022, the amount of funds withheld was $0 (December 31, 2021 - $26,460) and the accrued interest was $0 (December 31, 2021 - $141). AIU DAC paid Maiden Reinsurance a fixed annual interest rate of 0.5% on the average daily funds withheld balance. The interest income on the funds withheld receivable was $3 and $59 for the three and nine months ended September 30, 2022, respectively (2021 - $37 and $111, respectively).

Brokerage Agreement

Effective July 1, 2007, the Company had a reinsurance brokerage agreement with AII Reinsurance Broker Ltd. ("AIIB"), a wholly owned subsidiary of AmTrust. Pursuant to the brokerage agreement, AIIB provided brokerage services relating to the AmTrust Quota Share and the European Hospital Liability Quota Share for a fee equal to 1.25% of the premium assumed. AIIB was not the Company's exclusive broker. The brokerage agreement was terminated as of March 15, 2019.

Maiden Reinsurance had $67 and $48 of reinsurance brokerage expense for the three and nine months ended September 30, 2022 (2021 - $94 and $242, respectively) and deferred reinsurance brokerage of $868 at September 30, 2022 (December 31, 2021 - $1,147) as a result of this agreement.

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 the previous calendar quarter is greater than $1 billion.~~account. The agreement may be terminated upon 30 days written notice by either party. The Company recorded ~~approximately $1,927~~$99 and ~~$5,586~~$329 of investment management fees for the three and nine months ended September 30, ~~2017,~~2022, respectively ~~(2016~~(2021 - ~~$1,780~~$196 and ~~$5,122,~~$690, respectively) ~~as a result of~~under this agreement.

~~Other~~

~~The Company~~On September 9, 2020, Maiden Reinsurance, AmTrust and AIIM entered into ~~time sharing agreements~~a novation agreement, effective July 1, 2020, which provided for the ~~lease~~novation of ~~aircraft owned~~the asset management agreement, dated January 1, 2018 between Maiden Reinsurance and AIIM, and the release by Maiden Reinsurance of AIIM's obligations under the asset management agreement. The novation mandates that AmTrust ~~Underwriters, Inc. ("AUI"), a wholly owned subsidiary~~is to be bound by the terms of the asset management agreement in place of AIIM and AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement.

On November 13, 2020, Maiden LF, Maiden GF, AmTrust and ~~by AmTrust on March~~AIIM entered into a novation agreement, effective July 1, ~~2011 and November 5, 2014, respectively. The agreements automatically renew~~2020, which provided for ~~successive one-year terms unless terminated in accordance with~~ the ~~provisions~~novation of the ~~agreements. Pursuant~~asset management agreement, dated January 1, 2018 between Maiden LF, Maiden GF and AIIM, and the release by Maiden LF and Maiden GF of AIIM's obligations under the asset management agreement. The novation mandates that AmTrust is to be bound by the ~~agreements,~~terms of the asset management agreement in place of AIIM and AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement.

683 Capital Partners, LP (“683 Partners”)

At September 30, 2022, 683 Partners and its affiliates own or control approximately 5.0% of the outstanding common shares of the Company. 683 Partners and its affiliates are not related parties as defined in ASC 850: Related Party Disclosures.

Limited Partnership Agreement with 683 Capital Management, LLC ("683 Capital")

In July 2020, the Company and 683 Capital entered into a limited partnership agreement (“683 LP Agreement”) whereby 683 Capital will ~~reimburse AUI~~separately manage certain funds of Maiden Reinsurance at its discretion, subject to guidelines established by the parties. Under the 683 LP Agreement, Maiden Reinsurance will pay 683 Capital a management fee and ~~AmTrust for actual expenses incurred as allowed~~subject to certain metrics agreed to by ~~Federal Aviation Regulations. For~~ the ~~three~~parties, an incentive fee upon attainment of those metrics. Maiden Reinsurance may periodically and in its discretion increase the amount invested under the 683 LP Agreement, and subject to certain conditions, reduce the amount invested under the 683 LP Agreement. Hedge fund investments of $15,447 were managed by 683 Capital under this agreement at September 30, 2022 (December 31, 2021 - $32,929) which reflected investment results through that date along with a reduction in the amount invested under the 683 LP Agreement during the nine months ended September 30, ~~2017,~~2022.

11. Commitments, Contingencies and Guarantees

There are no material changes from the ~~Company recorded an expense of $nil~~commitments, contingencies and ~~$39, respectively (2016 - $22 and $61, respectively)~~concentrations previously disclosed in the Company’s Form 10-K for the ~~use~~year ended December 31, 2021.

a)Concentrations of Credit Risk

At September 30, 2022 and December 31, 2021, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, reinsurance recoverable on paid and unpaid losses and funds withheld receivable. Please refer to "Note 8. Reinsurance" for additional information regarding the Company's credit risk exposure on its reinsurance counterparties including the impact of the ~~aircraft.~~

~~NGHC~~

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

~~NGHC Quota Share~~

~~Maiden Bermuda,~~LPT/ADC Agreement effective ~~March~~January 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.2019. The Company ~~and NGHC mutually agreed that the termination is on a run-off basis.~~requires its reinsurers to have adequate financial strength.

~~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)

11. Commitments, Contingencies and Guarantees (continued)

~~9. Commitments~~The Company evaluates the financial condition of its reinsurers and ~~Contingencies~~


a)	~~Concentrations of Credit Risk~~

~~At September 30, 2017 and December 31, 2016, the Company’s assets where significant concentrations~~monitors its concentration of credit risk ~~may exist include investments, cash and cash equivalents, loan to related party, reinsurance balances receivable and reinsurance~~on an ongoing basis. Provisions are made for amounts that are considered potentially uncollectible. Letters of credit are provided by its reinsurers for material amounts recoverable ~~on unpaid losses.~~

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 (December 31, 2016 – 54.8%, 31.6% and 2.9%, respectively)as discussed in "Note 8. Reinsurance". At September 30, 2017, 98.7% (December 31, 2016 - 97.2%) of the reinsurance recoverable on unpaid losses was due from reinsurers with credit ratings from A.M Best of A 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. 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 and December 31, 2016, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.~~

The Company manages the concentration of credit risk in ~~the~~its 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~~funds withheld receivable, within which the largest ~~balance is~~balances are due from AmTrust. AmTrust has a financial strength/credit rating of A- (Excellent) from A.M. Best at September 30, 2022. To mitigate credit risk, wethe Company generally ~~have~~has a contractual right of offset thereby allowing usclaims to ~~settle claims~~be settled net of any premiums or loan receivable. The Company believes these balances as at September 30, 2022 will be fully collectible.


b)	~~Concentrations of Revenue~~

~~During the three~~b)Investment Commitments and ~~nine months ended~~Related Financial Guarantees

The Company's unfunded commitments on other investments is $76,437 at September 30, ~~2017, our gross premiums written from AmTrust accounted for $420,019 or 66.6%~~2022 (December 31, 2021 - $68,262). The Company's unfunded commitments on equity method investments was $25,069 at September 30, 2022 (December 31, 2021 - $25,950). The Company's unfunded commitments on private equity securities at September 30, 2022 was $17,663 (December 31, 2021 - $27,415). The Company's unfunded commitments on other investments at September 30, 2022 and ~~$1,575,677 or 69.7%, respectively~~December 31, 2021 were as follows:


	September 30, 2022				December 31, 2021
	Fair Value		% of Total		Fair Value		% of Total
Private equity funds	$	56,767	74.3	%	$	46,149	67.6	%
Private credit funds	14,981		19.6	%	4,897		7.2	%
Investments in direct lending entities	3,304		4.3	%	13,216		19.4	%
Other privately held investments	1,385		1.8	%	4,000		5.8	%
Total unfunded commitments on other investments	$	76,437	100.0	%	$	68,262	100.0	%

Certain of ~~our total gross premiums written (2016 – $520,104 or 73.6% and $1,591,902 or 70.5%, respectively).~~


c)	~~Dividends Declared~~

~~On August 3, 2017,~~ the Company's ~~Board~~investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of ~~Directors authorized~~properties to the ~~following quarterly dividend:~~ownership of income-producing properties. In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties such that it may be required to make payments now or in the future.

Any loss for which the Company could be liable would be contingent on the default of a loan by the real estate joint venture entity for which the Company provided a financial guarantee to a lender. While the Company has committed to aggregate limits as to the amount of guarantees it will provide as part of its limited partnerships, guarantees are only provided on an individual transaction basis and are subject to the terms and conditions of each transaction mutually agreed by the parties involved. The Company is not bound to such guarantees without its express authorization.

As discussed above, at September 30, 2022, guarantees of $41,302 (December 31, 2021 - $33,305) were provided to lenders by the Company on behalf of real estate joint ventures, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote. Therefore, no liability has been accrued under ASC 450-20.


d)	~~Legal Proceedings~~

c)Operating Lease Commitments

The Company leases office spaces, housing, office equipment and company vehicles under various operating leases expiring in various years through 2024. The Company's leases are currently classified as operating leases and none of them have non-lease components. For operating leases that have a lease term of more than twelve months, and whose lease payments are above a certain threshold, the Company recognizes a lease liability and a right-of-use asset in the Condensed Consolidated Balance Sheets at the present value of the remaining lease payments until expiration. As the lease contracts generally do not provide an implicit discount rate, the Company used the weighted-average discount rate of 10%, representing its secured incremental borrowing rate, in calculating the present value of the lease liability. This amount of $328 is recorded as a lease liability within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other assets at September 30, 2022 (December 31, 2021 - $473). The Company's weighted-average remaining lease term is approximately 2.1 years at September 30, 2022.

d)Legal Proceedings

Except as noted below, the Company is not a party to any material legal proceedings. From time to time, the Company is subject to routine legal proceedings, including ~~arbitrations,~~arbitration, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Based on the Company's opinion, the eventual outcome of these legal proceedings is not expected to have a material adverse effect on its financial condition or results of operations.

In April 2009, the Company learned that Bentzion S. Turin, the former Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden ~~Bermuda,~~Reinsurance, sent a letter to the U.S. Department of Labor claiming that his employment with the Company was terminated in retaliation for corporate ~~whistle blowing~~whistle-blowing in violation of the ~~whistle blower~~whistle-blower protection provisions of the Sarbanes-Oxley Act of 2002.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

11. Commitments, Contingencies and Guarantees (continued)

Mr. Turin alleged that he was terminated for raising concerns regarding corporate governance with respect to the negotiation of the terms of the Trust Preferred Securities Offering. He seeks reinstatement as Chief Operating Officer, General Counsel and Secretary of Maiden Holdings and Maiden ~~Bermuda,~~Reinsurance, back pay and legal fees incurred. On December 31, 2009, the U.S. Secretary of Labor found no reasonable cause for Mr. Turin’s claim and dismissed the complaint in its entirety. Mr. Turin objected to the Secretary's findings and requested a hearing before an administrative law judge in the U.S. Department of Labor. The Company moved to dismiss Mr. Turin's complaint, and its motion was granted by the Administrative Law Judge on June 30, 2011.

On July 13, 2011, Mr. Turin filed a petition for review of the Administrative Law Judge's decision with the Administrative Review Board in the U.S. Department of Labor. On March 29, 2013, the Administrative Review Board reversed the dismissal of the complaint on procedural grounds, and remanded the case to the administrative law judge. The administrative hearing began in September ~~2014. Twelve hearing days have taken place,~~2014 and ~~we expect~~concluded in November 2018. On September 2, 2021, Administrative Law Judge Theresa C. Timlin of the ~~hearings to conclude~~U.S. Department of Labor issued a decision and order which denied Mr. Turin’s complaint in ~~late 2017 or early 2018.~~full. On September 16, 2021, Mr. Turin filed a petition for review of the Administrative Law Judge's decision with the Administrative Review Board in the U.S. Department of Labor. The Company believes that it had good and sufficient reasons for terminating Mr. Turin's employment and that the claim is without merit. The Company will continue to vigorously defend itself against this claim.

A putative class action complaint was filed against Maiden Holdings, Arturo M. Raschbaum, Karen L. Schmitt, and John M. Marshaleck in the United States District Court for the District of New Jersey on February 11, 2019. On February 19, 2020, the Court appointed lead plaintiffs, and on May 1, 2020, lead plaintiffs filed an amended class action complaint (the “Amended Complaint”).The Amended Complaint asserts violations of Section 10(b) of the Exchange Act and Rule 10b-5 (and Section 20(a) for control person liability) arising in large part from allegations that Maiden failed to take adequate loss reserves in connection with reinsurance provided to AmTrust. Plaintiffs further claim that certain of Maiden Holdings’ representations concerning its business, underwriting and financial statements were rendered false by the allegedly inadequate loss reserves, that these misrepresentations inflated the price of Maiden Holdings' common stock, and that when the truth about the misrepresentations was revealed, the Company’s stock price fell, causing Plaintiffs to incur losses. On September 11, 2020, a motion to dismiss was filed on behalf of all Defendants. On August 6, 2021, the Court issued an order denying, in part, Defendants’ motion to dismiss, ordering Plaintiffs to file a shorter amended complaint no later than August 20, 2021, and permitting discovery to proceed on a limited basis. We believe the claims are without merit and we intend to vigorously defend ourselves. It is possible that additional lawsuits will be filed against the Company, its subsidiaries and its respective officers due to the diminution in value of our securities as a result of our operating results and financial condition. It is currently uncertain as to the effect of such litigation on our business, operating results and financial condition.

12. Earnings per Common Share

The following is a summary of the elements used in calculating basic and diluted earnings per common share:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Numerator:


Net (loss) income	$	(8,160)	$	(3,140)	$	(9,047)	$	14,258

Gain from repurchase of preference shares - Series A, C and D	—		6,004		28,233		87,168
Amount allocated to participating common shareholders(1)	—		(17)		(109)		(1,017)




Net (loss) income allocated to Maiden common shareholders	$	(8,160)	$	2,847	$	19,077	$	100,409
Denominator:
Weighted average number of common shares – basic	87,161,499		86,433,780		86,935,823		85,937,012
Potentially dilutive securities:
Share options and restricted share units(2)	—		4,452		1,729		4,406
Adjusted weighted average number of common shares – diluted(2)	87,161,499		86,438,232		86,937,552		85,941,418
Basic and diluted (loss) earnings per share attributable to common shareholders	$	(0.09)	$	0.03	$	0.22	$	1.17

(1)This represents the share in net income using the two-class method for holders of non-vested restricted shares issued to the Company's employees under the 2019 Omnibus Incentive Plan.

(2)Please refer to "Note 6. Shareholders' Equity" and "Note 14. Share Compensation and Pension Plans" in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for the terms and conditions of securities that could potentially be dilutive in the future. There were no potentially dilutive securities for the three months ended September 30, 2022 and 1,729 potentially dilutive securities for the nine months ended September 30, 2022 (2021 - 4,452 and 4,406, respectively).

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

~~10. Earnings per Common Share~~13. Income Taxes

The ~~following is a summary~~Company recognized an income tax benefit of ~~the elements used in calculating basic~~$91 and ~~diluted earnings per common share:~~

For the Three Months Ended September 30, 2017 2016
Numerator:
Net (loss) income attributable to Maiden $ (55,051 ) $ 40,852
Dividends on preference shares – Series A, C and D (8,545 ) (6,032 )
Dividends on convertible preference shares – Series B —
(2,991 )
Amount allocated to participating common shareholders⁽¹⁾
(6 ) (19 )
Numerator for basic EPS - net (loss) income allocated to Maiden common shareholders (63,602 ) 31,810
Potentially dilutive securities:
Dividends on convertible preference shares – Series B⁽²⁾
—
2,991
Numerator for diluted EPS - net (loss) income allocated to Maiden common shareholders after assumed conversion $ (63,602 ) $ 34,801
Denominator:
Weighted average number of common shares – basic 85,859,201
75,993,451
Potentially dilutive securities:
Share options and restricted share units —
1,100,206
Convertible preference shares⁽²⁾
—
9,057,294
Adjusted weighted average number of common shares and assumed conversions – diluted 85,859,201
86,150,951
Basic (loss) earnings per share attributable to Maiden common shareholders: $ (0.74 ) $ 0.42
Diluted (loss) earnings per share attributable to Maiden common shareholders: $ (0.74 ) $ 0.40

For the Nine Months Ended September 30, 2017 2016
Numerator:
Net (loss) income attributable to Maiden $ (44,854 ) $ 117,678
Dividends on preference shares – Series A, C and D (20,611 ) (18,752 )
Dividends on convertible preference shares – Series B —
(8,971 )
Amount allocated to participating common shareholders⁽¹⁾
(17 ) (55 )
Numerator for basic EPS - net (loss) income allocated to Maiden common shareholders (65,482 ) 89,900
Potentially dilutive securities:
Dividends on convertible preference shares – Series B⁽²⁾
—
8,971
Numerator for diluted EPS - net (loss) income allocated to Maiden common shareholders after assumed conversion $ (65,482 ) $ 98,871
Denominator:
Weighted average number of common shares – basic 86,256,481
74,625,839
Potentially dilutive securities:
Share options and restricted share units —
1,085,740
Convertible preference shares⁽²⁾
—
10,306,440
Adjusted weighted average number of common shares and assumed conversions – diluted 86,256,481
86,018,019
Basic (loss) earnings per share attributable to Maiden common shareholders: $ (0.76 ) $ 1.20
Diluted (loss) earnings per share attributable to Maiden common shareholders: $ (0.76 ) $ 1.15


~~(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~~income tax expense of $451 for ~~the year ended December 31, 2016,~~ ~~for the terms and conditions of each of these anti-dilutive instruments.~~

~~MAIDEN HOLDINGS, LTD.~~

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

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

~~11. Shareholders' Equity~~


a)	~~Common Shares~~

At September 30, 2017, the aggregate authorized share capital of the Company is 150,000,000 shares from which the Company has issued 87,728,554 common shares, of which 84,624,829 common shares are outstanding, and 18,600,000 preference shares, all of which are outstanding. The remaining 43,671,446 are undesignated at September 30, 2017. For further discussion on the components of Shareholders' Equity, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.


b)	~~Preference Shares~~ – ~~Series D~~

On June 15, 2017, the Company issued and authorized a total of 6,000,000, 6.700% Preference Shares – Series D (the "Preference Shares - Series D"), par value $0.01 per share, at a price of $25 per preference share. The Company's total net proceeds from the offering was $144,942, after deducting issuance costs of $5,058, which were recognized as a reduction in additional paid-in capital. The Preference Shares – Series D have no stated maturity date and are redeemable in whole or in part at the sole option of the Company any time after June 15, 2022, subject to certain regulatory restrictions at a redemption price of $25 per preference share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Additionally, at any time prior to June 15, 2022, the Company may redeem all but not less than all of the Series D Preference Shares at a redemption price of $26 per share, plus declared and unpaid dividends, if any, to, but excluding, the date of redemption subject to certain conditions and regulatory approval.

Dividends on the Preference Shares – Series D are non-cumulative. Consequently, in the event a dividend is not declared on the Preference Shares – Series D for any dividend period, holders of Preference Shares – Series D will not be entitled to receive a dividend for such period, and such undeclared dividend will not accrue and will not be payable. The holders of Preference Shares – Series D will be entitled to receive dividend payments only when, as and if declared by the Company's board of directors or a duly authorized committee of the board of directors. Any such dividends will be payable from, and including, the date of original issue on a non-cumulative basis, quarterly in arrears.

To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 6.7% of the $25 liquidation preference per annum. During any dividend period, so long as any Preference Shares – Series D remain outstanding, unless the full dividends for the latest completed dividend period on all outstanding Preference Shares – Series D have been declared and paid, no dividend shall be paid or declared on the common shares.

The holders of the Preference Shares – Series D have no voting rights other than the right to elect up to two directors if preference share dividends are not declared and paid for six or more dividend periods.


c)	~~Treasury Shares~~

~~During~~ the three and nine months ended September 30, ~~2017,~~2022, respectively, compared to an income tax benefit of $155 and $363 for the same respective periods in 2021. The effective tax rate on the Company's net loss differs from the statutory rate of zero percent under Bermuda law due to tax on foreign operations, primarily the U.S. and Sweden. A valuation allowance has been established against the net U.S. deferred tax assets which are primarily attributable to net operating losses and discounting of loss reserves for tax purposes. At this time, the Company ~~repurchased~~believes it is necessary to establish a ~~total~~valuation allowance against the U.S. net deferred tax assets due to insufficient positive evidence regarding the utilization of ~~2,015,700~~these tax benefits in the future.

14. Subsequent Events

Exchange of Preference Shares for Common Shares

On November 9, 2022, the Company announced its intention to exchange all of the Company’s outstanding 8.250% Non-Cumulative Preference Shares Series A (the “Series A Preference Shares”), 7.125% Non-Cumulative Preference Shares Series C (the “Series C Preference Shares”) and 6.700% Non-Cumulative Preference Shares Series D (the “Series D Preference Shares” and, together with the Series A Preference Shares and the Series C Preference Shares, the “Preference Shares”) for shares of Maiden’s common shares, $0.01 par value per share (the “Common Shares”), subject to the terms of the certificate of designations for each of the Preference Shares, as amended (the "Exchange"). The Exchange requires that the terms of each of the Preference Shares be varied and any such variation will require the affirmative vote of holders of two-thirds of the issued shares of each series of the Preference Shares. Maiden Reinsurance, which currently owns more than 73% of each series of the Preference Shares, has indicated it will consent to the variations for each of the series of Preference Shares in order to effectuate the Exchange. The Company’s board of directors (the “Board”) established a special committee consisting solely of disinterested and independent directors (the “Special Committee”) for the purpose of evaluating and, if appropriate, negotiating and approving potential amendments to the certificates of designations for each series of Preference Shares in order to effectuate the Exchange. Advised by its own financial and legal advisors, the Special Committee unanimously approved an exchange ratio of three Common Shares per Preference Share of each series for record holders of the Preference Shares. The Board has also approved the amendments to the certificates of designations for each series of Preference Shares, and the Exchange. Under the proposed terms of the Exchange, holders of Preference Shares at the time of the Exchange will receive Common Shares having a fair value that meets the “Minimum Price” as determined in accordance with the rules of NASDAQ and as will be described in an ~~average~~information statement that Maiden will file with the Securities and Exchange Commission (the “SEC”) and will distribute to preference shareholders (the “Information Statement”). Specifically, holders of Preference Shares of each series will receive, for each Preference Share held, three Common Shares, with the value of each Preference Share so exchanged being equal to three times the price that is the lower of: (i) the closing price of ~~$7.11 per share under its share repurchase authorization.~~the Common Shares (as reflected on Nasdaq.com) immediately preceding the date of the Exchange; and (ii) the average closing price of the Common Shares (as reflected on Nasdaq.com) for the five trading days immediately preceding the date of the Exchange. As ~~at September 30, 2017,~~a result of the ~~Company has a remaining authorization of $85,662 for share repurchases.~~

~~In addition, during~~Exchange, the nine months ended September 30, 2017, the Company repurchased a total of 38,122 shares at an average price per share of $15.06 from employees, which represent withholdings in respect of tax obligationsPreference Shares will no longer trade on the ~~vesting~~New York Stock Exchange, and no Preference Shares will be issued or outstanding. All rights of ~~restricted shares~~the former holders related to ownership of the Preference Shares will terminate.

Upon completion of the Exchange, it is expected that Maiden Reinsurance will own approximately 29% of the Common Shares as of the date of the Exchange as described above, which Common Shares will be eliminated for accounting and ~~performance based shares. None~~financial reporting purposes on the Company’s consolidated financial statements.Maiden Reinsurance's voting power, with respect to its Common Shares will be capped at 9.5% under the terms of ~~these repurchases took place during~~ the ~~three months ended September 30, 2017.~~bye-laws of the Company.

The Exchange and the ownership of the Common Shares by Maiden Reinsurance is being made in compliance with Maiden Reinsurance's investment policy which has been approved by the Vermont Department of Financial Regulation.

As a result of the Exchange, Maiden estimates that its book value per Common Share will increase by approximately $0.82 per Common Share, subject to the determination of the final value of the Preference Shares and the exchange price of the Common Shares.Maiden expects to complete the transaction on or before December 31, 2022 and will notify holders of the exchange date when determined.

~~MAIDEN HOLDINGS, LTD.~~

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

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

~~11. Shareholders' Equity (continued)~~


d)	~~Accumulated Other Comprehensive Income~~

~~The following tables set forth financial information regarding the changes in the balances of each component of AOCI:~~

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

For the Three Months Ended September 30, 2016 Change in net unrealized gains on investment Foreign currency translation adjustments Total
Beginning balance $ 93,793
$ 25,034
$ 118,827
Other comprehensive income (loss) before reclassifications 8,899
(2,730 ) 6,169
Amounts reclassified from AOCI to net income, net of tax (1,202 ) —
(1,202 )
Net current period other comprehensive income (loss) 7,697
(2,730 ) 4,967
Ending balance 101,490
22,304
123,794
Less: AOCI attributable to noncontrolling interest —
(82 ) (82 )
Ending balance, Maiden shareholders $ 101,490
$ 22,386
$ 123,876

For the Nine Months Ended September 30, 2017 Change in net unrealized gains on investment Foreign currency translation adjustments Total
Beginning balance $ (20,716 ) $ 35,604
$ 14,888
Other comprehensive income (loss) before reclassifications 68,803
(38,803 ) 30,000
Amounts reclassified from AOCI to net income, net of tax 1,123
—
1,123
Net current period other comprehensive income (loss) 69,926
(38,803 ) 31,123
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

For the Nine Months Ended September 30, 2016 Change in net unrealized gains on investment Foreign currency translation adjustments Total
Beginning balance $ (54,112 ) $ 30,231
$ (23,881 )
Other comprehensive income (loss) before reclassifications 155,024
(7,927 ) 147,097
Amounts reclassified from AOCI to net income, net of tax 578
—
578
Net current period other comprehensive income (loss) 155,602
(7,927 ) 147,675
Ending balance 101,490
22,304
123,794
Less: AOCI attributable to noncontrolling interest —
(82 ) (82 )
Ending balance, Maiden shareholders $ 101,490
$ 22,386
$ 123,876

~~12. Subsequent Events~~

~~On November 7, 2017, the Company's Board of Directors authorized the following quarterly dividends:~~

Dividend per Share
Payable on:
Record date:
Common shares
$ 0.15
January 16, 2018 January 2, 2018
Preference shares - Series A
$ 0.515625
December 15, 2017 December 1, 2017
Preference shares - Series C $ 0.445313
December 15, 2017 December 1, 2017
Preference shares - Series D $ 0.418750
December 15, 2017 December 1, 2017

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (this "Form 10-Q" or this "Report"). References in this Form 10-Q to the terms "we", "us", "our", "the Company", "Maiden" or other similar terms mean the consolidated operations of Maiden Holdings, Ltd. and its subsidiaries, unless the context requires otherwise. References in this Form 10-Q to the term "Maiden Holdings" means Maiden Holdings, Ltd. only.Certain reclassifications have been made for ~~2016~~2021 to conform to the ~~2017~~2022 presentation and have no impact on consolidated net income and total equity previously reported.

Note on Forward-Looking Statements

This Quarterly Report on Form 10-Q includes projections concerning financial information and statements concerning future economic performance and events, plans and objectives relating to management, operations, products and services, and assumptions underlying these projections and statements. These projections and statements are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 and are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside our control. These projections and statements may address, among other things, our strategy for growth, product development, financial results and reserves. Our actual results and financial condition may differ, possibly materially, from these projections and statements and therefore you should not place undue reliance on them.

Factors that could cause our actual results and financial condition to differ, possibly materially, from those in the specific projections and statements are discussed throughout this Management's Discussion and Analysis of Financial Condition and Results of Operations and in "Risk Factors" in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2021 that was filed with the U.S. Securities and Exchange Commission ("SEC") on March ~~6, 2017,~~14, 2022, however, these factors should not be construed as exhaustive. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

Overview

~~We are~~Maiden Holdings is a Bermuda-based holding ~~company, primarily focused on serving the needs~~company. We create shareholder value by actively managing and allocating our assets and capital, including through ownership and management of ~~regional~~businesses and ~~specialty insurers~~assets mostly in the ~~United States ("U.S."), Europe~~insurance and ~~select other global markets by providing innovative reinsurance~~related financial services industries where we can leverage our deep knowledge of those markets. We also provide a full range of legacy services to small insurance companies, particularly those in run-off or with blocks of reserves that are no longer core, working with clients to develop and implement finality solutions ~~designed~~including acquiring entire companies that enable our clients to ~~support~~meet their capital ~~needs. We specialize in reinsurance solutions that optimize financing~~ and risk management ~~by providing coverage within the more predictable~~objectives. We expect our legacy solutions business to contribute to our active asset and actuarially credible lower layers of coverage and/or reinsuring risks that are believed to be lower hazard, more predictable and generally not susceptible to catastrophe claims. Our tailored solutions includecapital management strategies.

Short-term income protection business is written on a ~~variety of value added services focused on helping our clients grow and prosper. Our principal operating subsidiaries are rated "A" (Excellent) with a stable outlook~~primary basis by A.M. Best Company ("A.M. Best") which rating is the third highest of sixteen rating levels and "BBB+" (Good) with a negative outlook by S&P Global Ratings ("S&P"), which is the eighth highest of twenty-two rating levels. Our common shares trade on the NASDAQ Global Select Market ("NASDAQ") under the symbol "MHLD".

~~We provide reinsurance in the U.S. and Europe through~~ our wholly owned subsidiaries Maiden ~~Reinsurance Ltd.~~Life Försäkrings AB ("Maiden ~~Bermuda"~~LF") and Maiden ~~Reinsurance North America, Inc.~~General Försäkrings AB ("Maiden ~~US"~~GF")~~. Internationally, we provide insurance sales~~ in the Scandinavian and ~~distribution~~Northern European markets. Insurance support services are provided to Maiden LF and Maiden GF through our wholly owned subsidiary, Maiden Global Holdings, Ltd. ("Maiden Global") ~~and its subsidiaries.~~which is also a licensed intermediary in the United Kingdom. Maiden Global ~~primarily focuses on~~had previously operated internationally by providing branded auto and credit life insurance products through insurer partners, ~~to retail clients~~particularly those in ~~the European Union ("EU")~~Europe and other global markets. These products also ~~produce~~produced reinsurance programs which ~~are~~were underwritten by ~~Maiden Bermuda. Certain international credit life business is written on a primary basis by Maiden Life Försäkrings AB ("Maiden LF"). During 2016, the Company incorporated a new~~our wholly owned subsidiary Maiden ~~General Försäkrings AB~~Reinsurance Ltd. ("Maiden ~~GF"~~Reinsurance").

We are not currently underwriting reinsurance business on new prospective risks but are actively underwriting risks on a retroactive basis through Genesis Legacy Solutions ("GLS"). We also have various historic reinsurance programs underwritten by Maiden Reinsurance which are in run-off, including the liabilities associated with AmTrust Financial Services, Inc. ("AmTrust") which we terminated in ~~Sweden.~~2019 as discussed in "Note 10. Related Party Agreements" of the Notes to Condensed Consolidated Financial Statements in Part I Item 1. "Financial Information". In addition, we have a Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") with Cavello Bay Reinsurance Limited ("Cavello") and a commutation agreement that further reduces our exposure to and limits the potential volatility related to these AmTrust liabilities in run-off, as discussed in "Note 8. Reinsurance" of the Notes to Condensed Consolidated Financial Statements in Part I Item 1. "Financial Information".

Our business currently consists of two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in ~~the U.S. and~~Europe. This segment also includes transactions entered into by GLS which was formed in ~~Europe.~~ November 2020. Our AmTrust Reinsurance segment includes all business ceded to Maiden Reinsurance by AmTrust, ~~Financial Services, Inc. ("AmTrust") to Maiden Bermuda,~~ primarily the quota share reinsurance agreement (“AmTrust Quota ~~Share~~Share”) between Maiden Reinsurance and AmTrust’s wholly owned subsidiary, AmTrust International Insurance, Ltd. (“AII”) and the European hospital liability quota share reinsurance contract ("European Hospital Liability Quota ~~Share.~~Share") with AmTrust’s wholly owned subsidiaries AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC"), both of which are in run-off effective January 1, 2019.

The reinsurance industry is mature and highly competitive and the market conditions in which we operate have historically been cyclical, experiencing periods of price erosion followed by rate strengthening as a result of catastrophes or other significant losses that affect the overall capacity of the industry to provide coverage. Reinsurance companies compete on the basis of many factors, including premium rates, company and underwriter relationships, general reputation and perceived financial strength, the terms and conditions of the products offered, ratings assigned by independent rating agencies, speed of claims payments, reputation and experience in risks underwritten, capacity and coverages offered and various other factors. These factors operate at the individual market participant level and generally in the aggregate across the reinsurance industry. In addition, underlying economic conditions and variations in the reinsurance buying practices of ceding companies, by participant and in the aggregate, contribute to cyclical movements in rates, terms and conditions and may impact industry aggregate results and subsequently the level of completion in the reinsurance industry.

While the business we write as part of our business model remains somewhat more insulated from these competitive conditions, we continue to experience residual pricing pressures as a result of these broader industry conditions. As market conditions evolve, we continue to maintain our adherence to disciplined underwriting by declining business when pricing, terms and conditions do not meet our underwriting and pricing standards.

During the third quarter of 2017, a series of natural catastrophes caused significant losses in insurance and reinsurance markets globally. Consistent with our low volatility, non–catastrophe oriented business model, we experienced more limited losses from these events than other market participants, with an estimate of $20.0 million from Hurricanes Harvey and Irma in the U.S., and no expected losses from Hurricane Maria or the Mexican earthquakes. While the ultimate losses from these events are not known presently, it appears the magnitude of loss may be sufficient to result in some level of pricing increases, primarily in property lines but possibly more broadly. We believe that we are well positioned to take advantage of market conditions should the pricing environment become more favorable.

Since our founding in 2007, we have entered into a series of significant strategic and capital transactions that have transformed the scope and scale of our business while maintaining our low volatility, non-catastrophe risk profile. These transactions have supported the growth in our gross premiums written to in excess of $2.8 billion in 2016 while significantly enhancing our total capital resources. Total capital resources are approximately $1.7 billion at September 30, 2017.

To date, we have not yet attained our targeted returns. We believe our efficient balance sheet and low volatility business are the primary reasons our returns have generally exceeded industry averages. Our capital management strategy in recent years has appreciably lowered our cost of capital and improved our returns on common equity. More recently, higher than targeted combined ratios have affected our underwriting profitability and limited our progress toward our objective. We believe, however, that the underwriting initiatives we have implemented will enable us to make progress toward our long term operating return on common equity target during the next 12 to 24 months.

Please refer to "Management's Discussion and Analysis of Financial Condition and Results of ~~Operations"~~Operations" section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2021 for further ~~information.~~information on recent developments within the Company.

We believe Maiden Holdings North America, Ltd.'s ("Maiden NA") investments, including its ownership of Maiden Reinsurance and its active asset management strategy, will create opportunities to utilize net operating loss carry-forwards ("NOL") of $262.1 millionas of September 30, 2022. These NOL carryforwards, in combination with additional net deferred tax assets ("DTA") primarily related to our insurance liabilities result in a net U.S. DTA (before valuation allowance) of $120.8 million or $1.39 per common share at September 30, 2022.

These net DTA are not presently recognized on the Company's consolidated balance sheet as a full valuation allowance is carried against them. At this time, while positive evidence in support of reducing the valuation allowance is accumulating, the Company believes it is necessary to maintain its full valuation allowance against the net U.S. DTA due to insufficient accumulation of evidence at this time regarding the utilization of these losses. As our profitability continues to improve, we will continuously evaluate the amount of the valuation allowance held against the net U.S. DTA.

For further details, please see "Note 13. Income Taxes" included under Item 8 "Financial Statements and Supplementary Data" in our Annual Report on Form 10-K for the year ended December 31, 2021. Taken together, we believe these measures should generate additional income for Maiden NA in a tax-efficient manner, while sharing in the improvement in profitability anticipated in Maiden Reinsurance as a result of the measures enacted as described above.

Business Strategy

We continued to deploy our revised operating strategy during 2022 which leverages the significant assets and capital we retain. In addition to restoring operating profitability, our strategic focus centers on creating the greatest risk-adjusted shareholder returns in order to increase book value for our common shareholders, both near and long-term. This strategy has three principal areas of focus:

•Asset management - investing in assets and asset classes in a prudent but expansive manner in order to maximize investment returns and is principally enabled by limiting the amount of insurance risk we assume in relation to the assets we hold and maintaining required regulatory capital at very strong levels to manage our aggregate risk profile;

•Legacy underwriting - judiciously building a portfolio of legacy run-off acquisitions and retroactive reinsurance transactions which we believe will produce attractive underwriting returns; and

•Capital management - effectively managing the capital we hold on our balance sheet and when appropriate, repurchasing securities or returning capital to enhance common shareholder returns.

The returns expected to be produced by each pillar of our strategy are evaluated in relation to our cost of debt capital, which carries a weighted average effective interest rate of 7.6%. To the extent our experience or belief indicates we cannot exceed the cost of debt capital over a reasonable long-term investment horizon, we expect to refrain from activities in those areas. As an example, our present assessment of the reinsurance marketplace along with our current operating profile continues to be that the risk-adjusted returns that may be produced via active reinsurance underwriting of new prospective risks are likely to be lower over the long-term than our cost of capital.

The measures implemented in recent years have allowed us to more flexibly allocate capital to those activities most likely to produce the greatest returns for shareholders, and we are actively engaged in evaluating and deploying funds in all pillars of the strategies as discussed herein. We also believe that these areas of strategic focus will enhance our profitability through increased returns, which we believe also increase the likelihood of fully utilizing the significant NOL carryforwards described above which would create additional common shareholder value.

As part of our expanded asset management activities, we have evaluated and continue to consider investing in various initiatives in the insurance industry across a variety of segments which we believe will produce appropriate risk-adjusted returns while maintaining the option to consider underwriting activities in the future. We believe these expanded activities will produce a broad range of positive impacts on our financial condition, including current income, longer-term gains and in certain instances, fee income.

In recent years, we have invested approximately $263.6 million into alternative investments which include equity securities, other investments and equity method investments in a wide variety of asset classes and we believe these activities will exceed that benchmark cost of capital with adjustments as necessary if those returns do not emerge.

In November 2020, we formed GLS which specializes in providing a full range of legacy services to small insurance entities, particularly those in run-off or with blocks of reserves that are no longer core, working with clients to develop and implement finality solutions including acquiring entire companies that enable our clients to meet their capital and risk management objectives. We acquire legacy liabilities and (re)insurance reserves from companies and provide retroactive reinsurance coverage for portfolios of (re)insurance business, primarily via loss portfolio transfer contracts (“LPT”). Additionally, we provide reinsurance contracts to other (re)insurers to mitigate some of their risk of future adverse development (adverse development cover, or “ADC”) on insurance risks relating to prior accident years.

We believe the formation of GLS is highly complementary to our overall longer-term strategy and will produce risk-adjusted returns in excess of our debt cost of capital. In addition, while we anticipate profitable growth from the GLS portfolio as it develops, we expect our required capital to continue to decline as insurance risk incurred by GLS will be more than offset by the run-off of insurance liabilities from our prior reinsurance strategies. GLS, along with other recent insurance industry investments, enables us to leverage our knowledge base while not re-entering active underwriting of new prospective risks and maintaining an efficient operating profile. We believe GLS not only enhances our profitability through both fee income and effective claims management services, but it will also increase our asset base through the addition of blocks of reserves or companies that can be successfully wound down.

Effective October 1, 2021, GLS completed its first loss portfolio transfer transaction which includes an ADC cover. GLS and its subsidiaries have completed additional transactions in 2022 and as of September 30, 2022, GLS and its subsidiaries have insurance related liabilities totaling $29.5 million which included total reserves of $16.3 million, derivative liability on retroactive reinsurance of $9.0 million, and deferred gains on retroactive reinsurance of $4.1 million. GLS continues to write additional retroactive reinsurance transactions consistent with its business plan. In addition to producing returns that exceed the target cost of capital, we expect the business produced through GLS should further enhance our ability to pursue the asset and capital management pillars of our business strategy.

Our capital management strategy is significantly informed by the required capital needed to operate our business in a prudent manner and our ongoing analysis of our loss development trends. Recent trends continue to increase our confidence in our recorded ultimate losses for our insurance liabilities in run-off, however, a prudent assessment dictates that the run-off portfolio still requires additional maturity to fully emerge. While there is no guarantee that these recent loss development trends will persist, as our confidence has increased it has enabled us to pursue continued capital management initiatives, primarily the repurchase of our preference shares, which we believe provide the greatest risk-adjusted returns to our common shareholders. Our current assessment is that losses have continued to stabilize sufficiently to continue the capital management initiatives we initiated in 2020, although we have approached these strategies in a deliberate fashion.

On March 3, 2021 and May 6, 2021, the Company's Board of Directors approved the repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines, of up to $100.0 million and $50.0 million, respectively, of the Company's preference shares from time to time at market prices in open market purchases or as may be privately negotiated. The authorizations are collectively referred to as the "2021 Preference Share Repurchase Program". The Company has a remaining authorization of $3.9 million for preference share repurchases at September 30, 2022.

On November 9, 2022, subject to the terms and conditions of the preference shares including the affirmative vote of two-thirds of our preference shareholders, we announced our plans to exchange all outstanding preference shares for our common shares. As part of this transaction, we estimate that our book value per common share will increase by approximately $0.82 in the fourth quarter of 2022 subject to the determination of the final value of the preference shares and the exchange price of the common shares. Please refer to "Notes to Condensed Consolidated Financial Statements - Note 14. Subsequent Events" under Item 8 "Financial Statements and Supplementary Data" in Part I Item 1. "Financial Information" for further information.

Please refer to "Notes to Condensed Consolidated Financial Statements - Note 6. Shareholders' Equity" under Item 8 "Financial Statements and Supplementary Data" in Part I Item 1. "Financial Information" for recent repurchases and further detail on our preference shares.

Our ability to execute our asset and capital management initiatives is dependent on maintaining adequate levels of unrestricted liquidity and cash flows. Further, there can be no assurance that our insurance liabilities will run-off at levels that will permit further capital management activities, which we continually review as part of our strategy. Please refer to the "Liquidity and Capital Resources" section for further information on our asset and capital management activities, in particular our various preference share repurchase measures.

Three and Nine Months Ended September 30, ~~2017~~2022 and ~~2016~~2021 Financial Highlights


For the Three Months Ended September 30,	2022			2021			Change
Summary Consolidated Statement of Income Data (unaudited):	($ in thousands except per share data)


Net loss	$	(8,160)		$	(3,140)		$	(5,020)
Gain from repurchase of preference shares	—			6,004			(6,004)
Net (loss) income attributable to Maiden common shareholders	(8,160)			2,864			(11,024)
Basic and diluted earnings per common share:
Net (loss) income attributable to common shareholders(2)	(0.09)			0.03			(0.12)
Gain from repurchase of preference securities per common share	—			0.07			(0.07)
Gross premiums written	5,380			6,821			(1,441)
Net premiums earned	12,251			15,030			(2,779)
Underwriting loss(3)	(12,627)			(3,649)			(8,978)
Net investment results(13)	4,692			5,730			(1,038)

Non-GAAP measures:
Non-GAAP operating loss(1)	(21,060)			(3,114)			(17,946)
Non-GAAP basic and diluted operating loss per common share(1)	(0.24)			(0.04)			(0.20)
Annualized non-GAAP operating return on average common shareholders' equity(1)	(32.6)		%	(4.5)		%	(28.1)

For the Nine Months Ended September 30,	2022			2021			Change
Summary Consolidated Statement of Income Data (unaudited):	($ in thousands except per share data)


Net (loss) income	$	(9,047)		$	14,258		$	(23,305)
Gain from repurchase of preference shares	28,233			87,168			(58,935)
Net income attributable to Maiden common shareholders	19,186			101,426			(82,240)
Basic and diluted earnings per common share:
Net income attributable to Maiden common shareholders(2)	0.22			1.17			(0.95)
Gain from repurchase of preference shares per common share	0.32			1.01			(0.69)
Gross premiums written	(1,451)			7,865			(9,316)
Net premiums earned	23,816			40,106			(16,290)
Underwriting (loss) income(3)	(19,412)			6,377			(25,789)
Net investment results(13)	21,576			37,521			(15,945)

Non-GAAP measures:
Non-GAAP operating (loss) earnings(1)	(11,362)			58,135			(69,497)
Non-GAAP basic and diluted operating (loss) earnings per common share(1)	(0.13)			0.67			(0.80)

Annualized non-GAAP operating return on average common shareholders' equity(1)	(5.9)		%	32.3		%	(38.2)

For the Three Months Ended September 30, 2017 2016 Change
Summary Consolidated Statement of Income Data: ($ in thousands except per share data)
Net (loss) income $ (55,054 ) $ 40,796
$ (95,850 )
Net (loss) income attributable to Maiden common shareholders (63,596 ) 31,829
(95,425 )
Non-GAAP operating (loss) earnings⁽¹⁾
(56,414 ) 30,196
(86,610 )
Basic (loss) earnings per common share:
Net (loss) income attributable to Maiden common shareholders⁽²⁾
(0.74 ) 0.42
(1.16 )
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders⁽¹⁾
(0.66 ) 0.40
(1.06 )
Diluted (loss) earnings per common share:

Net (loss) income attributable to Maiden common shareholders^{(2) (9)}
(0.74 ) 0.40
(1.14 )
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders^{(1) (9)}
(0.66 ) 0.39
(1.05 )
Dividends per common share 0.15
0.14
0.01
Gross premiums written 630,972
706,854
(75,882 )
Net premiums earned 653,866
698,278
(44,412 )
Underwriting (loss) income⁽³⁾
(82,442 ) 17,369
(99,811 )
Net investment income 40,823
35,666
5,157
Combined ratio⁽⁴⁾
114.1 % 98.5 % 15.6
Annualized non-GAAP operating return on average common shareholders' equity⁽¹⁾
(22.5 )% 11.0 % (33.5 )

For the Nine Months Ended September 30, 2017
2016
Change
Summary Consolidated Statement of Income Data: ($ in thousands except per share data)
Net (loss) income $ (44,888 ) $ 117,512
$ (162,400 )
Net (loss) income attributable to Maiden common shareholders (65,465 ) 89,955
(155,420 )
Non-GAAP operating (loss) earnings⁽¹⁾
(46,226 ) 86,974
(133,200 )
Basic (loss) earnings per common share:
Net (loss) income attributable to Maiden common shareholders⁽²⁾
(0.76 ) 1.20
(1.96 )
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders⁽¹⁾
(0.54 ) 1.16
(1.7 )
Diluted (loss) earnings per common share:
Net (loss) income attributable to Maiden common shareholders^{(2) (9)}
(0.76 ) 1.15
(1.91 )
Non-GAAP operating (loss) earnings attributable to Maiden common shareholders^{(1) (9)}
(0.54 ) 1.11
(1.65 )
Dividends per common share 0.45
0.42
0.03
Gross premiums written 2,259,597
2,259,290
307
Net premiums earned 2,074,475
1,951,851
122,624
Underwriting (loss) income⁽³⁾
(116,455 ) 46,660
(163,115 )
Net investment income 123,492
107,291
16,201
Combined ratio⁽⁴⁾
106.7 % 98.7 % 8.0
Annualized non-GAAP operating return on average common shareholders' equity⁽¹⁾
(6.2 )% 11.8 % (18.0 )


	September 30, 2022			December 31, 2021			Change
Consolidated Financial Condition	($ in thousands except per share data)
Total investments and cash and cash equivalents(4)	$	708,040		$	888,699		$	(180,659)
Total assets	1,989,614			2,322,610			(332,996)
Reserve for loss and LAE	1,146,084			1,489,373			(343,289)
Senior notes - principal amount	262,500			262,500			—
Common shareholders' equity	207,721			225,047			(17,326)
Shareholders' equity	327,393			384,257			(56,864)
Total capital resources(5)	589,893			646,757			(56,864)
Ratio of debt to total capital resources(10)	44.5		%	40.6		%	3.9
Book Value calculations:
Book value per common share(6)	$	2.38		$	2.60		$	(0.22)
Accumulated dividends per common share(12)	4.27			4.27			—
Book value per common share plus accumulated dividends	$	6.65		$	6.87		$	(0.22)
Change in book value per common share plus accumulated dividends	(3.2)		%
Diluted book value per common share(7)	$	2.37		$	2.59		$	(0.22)

Non-GAAP measures:
Adjusted book value per common share(8)	$	2.79		$	3.18		$	(0.39)
Adjusted shareholders' equity(9)	362,531			434,200			(71,669)
Adjusted total capital resources(9)	625,031			696,700			(71,669)
Ratio of debt to adjusted total capital resources(11)	42.0		%	37.7		%	4.3

(1)Non-GAAP operating earnings (loss), non-GAAP operating earnings (loss) per common share, and annualized non-GAAP operating return on average common shareholders' equity are non-GAAP financial measures. See "Key Financial Measures" for additional information.

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

(3)Underwriting income or 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. See "Key Financial Measures" for additional information.

(4)Total investments and cash and cash equivalents includes both restricted and unrestricted.

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

(6)Book value per common share is calculated using common shareholders’ equity (shareholders' equity excluding the aggregate liquidation value of our preference shares) divided by the number of common shares outstanding. See "Key Financial Measures" for additional information.

(7)Diluted book value per common share is calculated by dividing 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 shares (assuming exercise of all dilutive share based awards). See "Key Financial Measures" for additional information.

(8)Adjusted book value per common share is a non-GAAP measure that is calculated using common shareholders' equity, adjusted by adding the following items to shareholders' equity: 1) the unamortized deferred gain on retroactive reinsurance arising from the LPT/ADC Agreement; and 2) an adjustment which reflects the equity method accounting related to the fair value of certain hedged liabilities within an equity method investment in a limited partnership investment held by the Company wherein the ultimate realizable value of the asset supporting the hedged liabilities cannot currently be recognized at fair value, divided by the number of common shares outstanding. See "Key Financial Measures" for additional information.

(9)Adjusted shareholders' equity and adjusted total capital resources are calculated by adding the following items to shareholders' equity: 1) the unamortized deferred gain on retroactive reinsurance arising from the LPT/ADC Agreement; and 2) an adjustment which reflects the equity method accounting related to the fair value of certain hedged liabilities within an equity method investment held by the Company wherein the ultimate realizable value of the asset supporting the hedged liabilities cannot currently be recognized at fair value. The deferred gain arises from the LPT/ADC Agreement with Cavello relating to losses from the AmTrust Quota Share agreement. Under U.S. GAAP, the deferred gain shall be amortized over the estimated remaining settlement period. See "Key Financial Measures" for additional information.

(10)Ratio of debt to total capital resources is calculated using the total principal amount of debt divided by the sum of total capital resources.

(11)Ratio of debt to adjusted total capital resources is calculated using the total principal amount of debt divided by the sum of adjusted total capital resources.

(12)Accumulated dividends per common share includes the cumulative sum of dividends declared and paid in the past on the Company's issued common shares since inception.

(13)Net investment results include the sum of net investment income, net realized and unrealized gains (losses), and interest in income (loss) of equity method investments.

September 30, 2017 December 31, 2016 Change
Consolidated Financial Condition ($ in thousands except per share data)
Total investments and cash and cash equivalents⁽⁵⁾
$ 5,324,271
$ 4,886,473
$ 437,798
Total assets 6,839,097
6,252,299
586,798
Reserve for loss and loss adjustment expense ("loss and LAE") 3,365,011
2,896,496
468,515
Senior notes - principal amount 262,500
362,500
(100,000 )
Maiden common shareholders' equity 956,027
1,045,797
(89,770 )
Maiden shareholders' equity 1,421,027
1,360,797
60,230
Total capital resources⁽⁶⁾
1,683,527
1,723,297
(39,770 )
Ratio of debt to total capital resources 15.6 % 21.0 % (5.4 )

Book Value
Book value per common share⁽⁷⁾
$ 11.30
$ 12.12
$ (0.82 )
Accumulated dividends per common share 3.77
3.32
0.45
Book value per common share plus accumulated dividends $ 15.07
$ 15.44
$ (0.37 )

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


~~(1)~~	~~Non-GAAP operating (loss) earnings, non-GAAP operating (loss) earnings per common share and non-GAAP operating return on average common equity 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).~~


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


~~(3)~~	Underwriting (loss) income 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.


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


~~(5)~~	~~Total investments and cash and cash equivalents includes both restricted and unrestricted.~~


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

Key Financial Measures

In addition to our key financial measures presented in accordance with GAAP in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Comprehensive Income, management uses certain ~~key~~non-GAAP financial ~~measures, some of which are non-GAAP~~ measures to evaluate ~~its~~the Company's 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 to investors 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~~The calculation of these key financial measures including the reconciliation of non-GAAP measures to the nearest GAAP measure and relevant discussions are found within Item 2 - "Management's Discussion and Analysis of Financial Condition and Results of Operations". These non-GAAP 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 and non-GAAP diluted ~~non-GAAP~~ operating earnings per common 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~~allowing 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 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) foreign exchange and other gains or losses; (3) ~~amortization~~the portion of ~~intangible assets;~~favorable or unfavorable prior year reserve development for which we have ceded the risk under the LPT/ADC Agreement; and (4) ~~loss and related activity from our run-off operations comprised~~interest in income (loss) of ~~our former segment NGHC Quota Share and our divested excess and surplus ("E&S") business; (5) accelerated amortization of debt issuance costs; and (6) non-cash deferred tax expenses.~~equity method investments. We ~~exclude~~have excluded net realized gains ~~or losses~~ on investment, interest in income (loss) of equity method investments and foreign exchange and other gains ~~or losses~~(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 run-off operations~~that ceded risks under the LPT/ADC Agreement are representative of our ongoing and future business which are different to retroactive reinsurance risks written by GLS that are representative of our ongoing and future business. We believe all of these amounts are ~~largely~~substantially independent of our business and any potential future underwriting process, and therefore including them ~~distorts~~would distort the analysis of underlying trends in our operations.

Underwriting income (loss) ~~income~~ 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. For purposes of these non-GAAP operating measures, the fee-generating business which is included in our Diversified Reinsurance segment, is considered part of the underwriting operations of the Company. 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~~Statements in the "Notes to Condensed Consolidated Financial Statements (unaudited) Note 3. Segment ~~Reporting~~Information" ~~for further details.~~included under Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q.

~~Non-GAAPoperating (loss) earnings~~The Company no longer presents certain non-GAAP measures such as combined ratio and ~~non-GAAP diluted operating (loss) earnings 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

~~Non-GAAPoperating (loss) earnings attributable to Maiden common shareholders decreased by $86.6 million~~its related components in this Quarterly Report on Form 10-Q for the three months ended September 30, 2017 compared to the same period in 2016. This decrease was due to $77.7 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, 2017 was partially offset by a $5.2 million increase in net investment income.~~

~~Non-GAAPoperating (loss) earnings attributable to Maiden common shareholders decreased by $133.2 million for the~~ nine months ended September 30, ~~2017~~2022, as it believes that as the run-off of our reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate the financial results of the Company, particularly compared to ~~the same period in 2016. This decrease was due to $150.5 million~~historical data.

While an important metric of prior year adverse loss development as well as higher initial current year loss ratios during the nine months ended September 30, 2017 in both our operating segments as well as third quarter catastrophe losses of $20.0 million from Hurricanes Harvey and Irma. The decline insuccess, underwriting income ~~during~~(loss) does not reflect all components of profitability, as it does not recognize the ~~nine months ended September 30, 2017 was partially offset~~impact of investment income earned on premiums between the time premiums are received and the time loss payments are ultimately paid to clients. Because we do not manage our cash and investments by segment, investment income and interest expense are not allocated to the ~~$16.2 million increase in net investment income.~~reportable segments. Certain general and administrative expenses are generally allocated to segments based on actual costs incurred.

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

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

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
Opening Maiden common shareholders’ equity $ 1,035,399
$ 1,049,714
$ 1,045,797
$ 867,821
Ending Maiden common shareholders’ equity $ 956,027
$ 1,240,300
$ 956,027
$ 1,240,300
Average Maiden common shareholders’ equity $ 995,713
$ 1,091,203
$ 1,000,912
$ 981,196
Operating ROACE (22.5 )% 11.0 % (6.2 )% 11.8 %

Book Value per Common Share and Diluted Book Value per Common ~~Share~~:Share: Book value per common share and diluted book value per common share are non-GAAP measures. Management uses growth in both of these metrics as a prime measure of the value we are generating for our common shareholders, asbecause management believes that growth in each metric ultimately results in growth in the Company’s common share price. These metrics are impacted by the Company’s net ~~(loss)~~ income and external factors, such as interest rates, which can drive changes in unrealized gains or losses on our fixed income investment ~~portfolio. At September 30, 2017, book value per~~portfolio, as well as common or preference share ~~decreased by 6.8% and diluted book value per common share decreased by 6.7%, compared to December 31, 2016, (see "Liquidity and Capital Resources - Investments"~~ ~~on page 58 for further information). Book value and diluted book value per common share at September 30, 2017 and December 31, 2016 were computed as follows:~~repurchases.

September 30, 2017 December 31, 2016
($ in thousands except share and per share data)
Ending Maiden common shareholders’ equity $ 956,027
$ 1,045,797
Proceeds from assumed conversion of dilutive options 9,697
13,383
Numerator for diluted book value per common share calculation $ 965,724
$ 1,059,180

Common shares outstanding 84,624,829
86,271,109
Shares issued from assumed conversion of dilutive options and restricted share units 1,611,917
1,961,457
Denominator for diluted book value per common share calculation 86,236,746
88,232,566

Book value per common share $ 11.30
$ 12.12
Diluted book value per common share $ 11.20
$ 12.00

Ratio of Debt to Total Capital Resources: Management uses this non-GAAP measure to monitor the financial leverage of the Company. This measure is calculated using the total principal amount of debt divided by the sum of total capital resources. ~~The ratio~~

Non-GAAP underwriting income (loss) and Non-GAAP Net Loss and LAE: Management has further adjusted underwriting income (loss), as defined above, as well as reported net loss and LAE by excluding the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements such as the LPT/ADC Agreement. These losses are estimated to be fully recoverable from Cavello and management believes adjusting for this development shows the ultimate economic benefit of the LPT/ADC Agreement on our underwriting results. We believe

reflecting the economic benefit of this retroactive reinsurance agreement is helpful for understanding future trends in our operations.

Adjusted Total Shareholders' Equity, Adjusted Total Capital Resources, Ratio of Debt to Adjusted Total Capital Resources and Adjusted Book Value per Common Share: Management has adjusted GAAP shareholders' equity by adding the following items to shareholders' equity: 1) unamortized deferred gain on ceded retroactive reinsurance under the LPT/ADC Agreement; and 2) an adjustment which reflects the equity method accounting related to the fair value of certain hedged liabilities within an equity method investment held by the Company wherein the ultimate realizable value of the asset supporting the hedged liabilities cannot currently be recognized at ~~September 30, 2017 and~~fair value ("LP Investment Adjustment").

The unamortized deferred gain on ceded retroactive reinsurance under the LPT/ADC Agreement includes the aggregate impact of: 1) cumulative increases to losses incurred prior to December 31, ~~2016 was~~2018 for which we have ceded the risk under the LPT/ADC Agreement; and 2) changes in estimated ultimate losses for certain workers' compensation reserves previously commuted by the Company to AmTrust which are subject to specific terms and conditions pursuant to the LPT/ADC Agreement. As a result, by virtue of this adjustment, management has also adjusted Total Capital Resources and computed the Ratio of Debt to Adjusted Capital Resources and Adjusted Book Value per Common Share. The deferred gain liability on retroactive reinsurance under the LPT/ADC Agreement represents loss reserves estimated to be fully recoverable from Cavello and management believes adjusting for this shows the ultimate economic benefit of the LPT/ADC Agreement. We believe reflecting the economic benefit of this non-recurring retroactive reinsurance agreement is helpful to understand future trends in our operations, which will improve the Company's shareholders' equity over the settlement or contract periods, respectively.

Alternative investments is the total of the Company's holdings of equity securities, other investments and equity method investments as ~~follows:~~

September 30, 2017 December 31, 2016
($ in thousands)
Senior notes - principal amount $ 262,500
$ 362,500
Maiden shareholders’ equity 1,421,027
1,360,797
Total capital resources $ 1,683,527
$ 1,723,297
Ratio of debt to total capital resources 15.6 % 21.0 %
reported on the Company's Condensed Consolidated Balance Sheets.

Certain Operating Measures ~~and Relevant Factors~~

Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2021, filed with the SEC on March 14, 2022, for a general discussion on "Certain Operating Measures" utilized by the ~~Companyand the "Relevant Factors"~~ ~~associated with these Certain Operating Measures.~~Company.

Critical Accounting Policies and Estimates

The Company's critical accounting policies and estimates are discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2021, filed with the SEC on March ~~6, 2017.~~14, 2022. The critical accounting policies and estimates should be read in conjunction with "Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 2. Significant Accounting Policies" included in this Form ~~10Q~~10-Q and "Notes to Consolidated Financial Statements Note 2. Significant Accounting Policies" included inwithin the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2021, filed with the ~~SEC.~~SEC on March 14, 2022. There have been no material changes in the application of our critical accounting estimates subsequent to that report.

Results of Operations

The following table sets forth our selected unaudited Condensed Consolidated Statement of Income data for ~~each~~the three and nine months ended September 30, 2022 and 2021:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Gross premiums written	$	5,380	$	6,821	$	(1,451)	$	7,865
Net premiums written	$	5,222	$	6,953	$	(1,915)	$	7,518
Net premiums earned	$	12,251	$	15,030	$	23,816	$	40,106
Other insurance revenue	368		138		888		946
Net loss and LAE	(17,426)		(10,514)		(22,017)		(7,546)
Commission and other acquisition expenses	(5,398)		(6,313)		(12,811)		(19,154)
General and administrative expenses(1)	(2,422)		(1,990)		(9,288)		(7,975)
Underwriting (loss) income (2)	(12,627)		(3,649)		(19,412)		6,377
Other general and administrative expenses(1)	(4,069)		(4,660)		(15,383)		(21,578)
Net investment income	6,637		7,477		20,871		24,596
Net realized and unrealized investment (losses) gains	(1,572)		(937)		2,848		8,013



Foreign exchange and other gains	8,586		4,116		19,121		6,070
Interest and amortization expenses	(4,833)		(4,832)		(14,498)		(14,495)
Income tax benefit (expense)	91		155		(451)		363
Interest in (loss) income of equity method investments	(373)		(810)		(2,143)		4,912


Net (loss) income	(8,160)		(3,140)		(9,047)		14,258
Gain from repurchase of preference shares	—		6,004		28,233		87,168
Net (loss) income available to Maiden common shareholders	$	(8,160)	$	2,864	$	19,186	$	101,426

(1)Underwriting related general and administrative expenses is a non-GAAP measure. Please refer to "General and Administrative Expenses" belowfor additional information related to these corporate expenses and the reconciliation to those presented in our unaudited Condensed Consolidated Statements of Income.

(2)Underwriting 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.

(3)The Company no longer presents certain non-GAAP measures such as combined ratio and its related components in its results of operation, as it believes that as the ~~periods indicated:~~run-off of its reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate our financial results.

For the Three Months Ended September 30, For the Nine Months Ended September 30,
($ in thousands) 2017 2016 2017 2016
Gross premiums written $ 630,972
$ 706,854
$ 2,259,597
$ 2,259,290
Net premiums written $ 617,330
$ 690,653
$ 2,201,950
$ 2,133,911
Net premiums earned $ 653,866
$ 698,278
$ 2,074,475
$ 1,951,851
Other insurance revenue 2,488
2,345
7,816
8,696
Net loss and LAE (535,968 ) (466,751 ) (1,545,157 ) (1,297,361 )
Commission and other acquisition expenses (193,462 ) (206,706 ) (625,530 ) (587,501 )
General and administrative expenses⁽¹⁾
(9,366 ) (9,797 ) (28,059 ) (29,025 )
Underwriting (loss) income⁽²⁾
(82,442 ) 17,369
(116,455 ) 46,660
Other general and administrative expenses⁽¹⁾
(10,126 ) (7,155 ) (24,193 ) (20,713 )
Net investment income 40,823
35,666
123,492
107,291
Net realized gains on investment 5,859
1,900
8,316
4,511
Accelerated amortization of senior note issuance cost —
—
(2,809 ) (2,345 )
Amortization of intangible assets (533 ) (616 ) (1,599 ) (1,846 )
Foreign exchange (losses) gains (3,550 ) 687
(12,193 ) 6,474
Interest and amortization expenses (4,829 ) (6,856 ) (18,430 ) (21,314 )
Income tax expense (256 ) (199 ) (1,017 ) (1,206 )
Net (loss) income (55,054 ) 40,796
(44,888 ) 117,512
Loss attributable to noncontrolling interests 3
56
34
166
Dividends on preference shares (8,545 ) (9,023 ) (20,611 ) (27,723 )
Net (loss) income attributable to Maiden common shareholders $ (63,596 ) $ 31,829
$ (65,465 ) $ 89,955

Ratios
Net loss and LAE ratio⁽³⁾
81.6 % 66.6 % 74.2 % 66.2 %
Commission and other acquisition expense ratio⁽⁴⁾
29.5 % 29.5 % 30.0 % 30.0 %
General and administrative expense ratio⁽⁵⁾
3.0 % 2.4 % 2.5 % 2.5 %
Expense ratio⁽⁶⁾
32.5 % 31.9 % 32.5 % 32.5 %
Combined ratio⁽⁷⁾
114.1 % 98.5 % 106.7 % 98.7 %


~~(1)~~	~~Underwriting related general and administrative expenses is a non-GAAP measure. Please refer to~~ ~~"General and Administrative Expenses"~~ ~~belowfor additional information related to these corporate expenses and the reconciliation to those presented in our Condensed Consolidated Statements of Income.~~


~~(2)~~	Underwriting (loss) income 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.


~~(3)~~	~~Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.~~


~~(4)~~	~~Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.~~


~~(5)~~	~~Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.~~


~~(6)~~	~~Calculated by adding together commission and other acquisition expense ratio and general and administrative expense ratio.~~


~~(7)~~	~~Calculated by adding together net loss and LAE ratio and the expense ratio.~~

Net Income

Net loss ~~attributable~~available to Maiden common shareholders for the three months ended September 30, ~~2017~~2022 was ~~$63.6~~$8.2 million compared to net income ~~attributable to Maiden common shareholders~~ of ~~$31.8~~$2.9 million for the same period in ~~2016.~~2021. The ~~factors that contributed to the~~ net ~~decrease~~income for the three months ended September 30, ~~2017 compared to~~2021 included a gain from repurchase of our preference shares of $6.0 million. We did not repurchase any preference shares in the three months ended September 30, 2022; excluding the gain on the repurchase of our preference shares for the same period in ~~2016 were as follows:~~

~~current period underwriting~~2021, net loss of ~~$82.4~~was $3.1 million in for the third quarter of 2021 compared to ~~underwriting income~~a net loss of ~~$17.4~~$8.2 million for the third quarter of 2022. The decrease in results during the third quarter of ~~2016. The deterioration in~~2022 compared to the ~~underwriting result~~third quarter of 2021 was primarily due to:

◦

Adverse development of prior year losses of $77.7 million for the three months ended September 30, 2017 compared to $12.4 million for the same period in 2016. This development, which is discussed in greater detail in the individual segment discussion and analysis, was primarily in our AmTrust Reinsurance segment, but adverse development was also experienced in our Diversified Reinsurance Segment and Other category;


◦	~~Our Other category also incurred adverse development of $8.7 million during the quarter compared to a negligible amount in the comparative quarter due to increased~~ •underwriting loss reserves in our remaining run–off litigated U.S. E&S property claims as well as increased loss reserves in the run–off of the National General Holdings Corporation Quota Share ("NGHC Quota Share");


◦	In the third quarter of 2017, we incurred $20.0 million of estimated losses from Hurricanes Harvey and Irma, with an estimated $15.0 million in related losses in our Diversified Reinsurance segment and $5.0 million in losses from our AmTrust Reinsurance segment; and


◦	Current year underwriting results have also been impacted as we have increased our initial loss picks in both our Diversified Reinsurance and AmTrust Reinsurance segments factoring in both market conditions and recent loss trends and experience.

~~foreign exchange losses~~ of ~~$3.6~~$12.6 million for the three months ended September 30, ~~2017~~2022 compared to ~~foreign exchange gains~~underwriting loss of ~~$0.7~~$3.6 million ~~for~~in the same period in ~~2016~~2021 largely due to:

◦adverse prior year loss development of $0.8 million in the third quarter of 2022 compared to favorable prior year loss development of $5.4 million during the ~~strengthening~~same period in 2021; and

◦on a current accident year basis, underwriting loss of ~~euro and British pound against the U.S. dollar.~~

~~The decreases above were offset by the following:~~

~~increase in net investment income of $5.2~~$11.8 million ~~or 14.5%,~~ for the three months ended September 30, ~~2017~~2022 compared to an underwriting loss of $9.0 million for the same period in ~~2016. This increase reflects the growth in average invested assets of 6.6%~~2021.

•total income from ~~the same period in 2016 and increase in average yields to 3.1% during~~investment activities was $4.7 million for the three months ended September 30, ~~2017~~2022 compared to ~~2.9% during~~$5.7 million for the same period in ~~2016. Additionally, part~~2021 which was comprised of:

◦net investment income decreased to $6.6 million for the three months ended September 30, 2022 compared to $7.5 million for the same period in 2021;

◦realized and unrealized investment losses were $1.6 million for the three months ended September 30, 2022 compared to losses of $0.9 million for the ~~increase is attributable~~same period in 2021; and

◦interest in loss of equity method investments was $0.4 million for the three months ended September 30, 2022 compared to ~~the call of certain securities which generated additional amortization income~~loss of $0.8 million ~~during~~for the ~~quarter. There were no calls~~same period in 2021.

The decrease in our results as discussed above was partially offset by the ~~comparative period.~~following:

•corporate general and administrative expenses decreased to $4.1 million for the three months ended September 30, 2022 compared to $4.7 million for the same period in 2021; and

•foreign exchange and other gains increased to $8.6 million for the three months ended September 30, 2022, compared to foreign exchange and other gains of $4.1 million for the same period in 2021.

Net ~~loss attributable~~income available to Maiden common shareholders for the nine months ended September 30, ~~2017~~2022 was ~~$65.5~~$19.2 million compared to net income ~~attributable~~available to Maiden common shareholders of ~~$90.0~~$101.4 million for the same period in ~~2016.~~

2021. The ~~factors that contributed to the~~ net decrease in results for the nine months ended September 30, ~~2017~~2022 compared to the same period in ~~2016~~2021 was primarily due to lower gains in 2022 from the repurchase of our preference shares which were ~~as follows:~~

an underwriting loss of $116.5 million compared to underwriting income of $46.7 million during the nine months ended September 30, 2016. The deterioration in the underwriting result was principally due to:


◦	Adverse development of prior year losses of $150.5 million in 2017 compared to $41.9 million for the same period in 2016. This development, which is discussed in greater detail in the individual segment discussion and analysis, was primarily in our AmTrust Reinsurance segment, but adverse development was also experienced in our Diversified Reinsurance Segment and Other category;


◦	Our Other category, also incurred adverse development of $10.2 million during the period compared to $2.9 million in the comparative period in 2016 due to increased loss reserves in our remaining run–off litigated U.S. E&S property claims as well as increased loss reserves in the run–off of the NGHC Quota Share;


◦	In the third quarter of 2017, we incurred $20.0 million of estimated losses from Hurricanes Harvey and Irma, with an estimated $15.0 million in related losses in our Diversified Reinsurance segment and $5.0 million in losses from our AmTrust Reinsurance segment; and


◦	Current year underwriting results have also been impacted as we have increased our initial loss picks in both our Diversified Reinsurance and AmTrust Reinsurance segments factoring in both market conditions and recent loss trends and experience.

~~foreign exchange losses of $12.2~~$28.2 million for the nine months ended September 30, ~~2017~~2022 compared to ~~foreign exchange gains of $6.5~~$87.2 million for the same period in ~~2016 due to~~2021.

Excluding the ~~strengthening~~gain on the repurchase of ~~euro and British pound against the U.S. dollar.~~

~~The decreases above were offset by the following:~~

~~increase in~~our Preference Shares, net ~~investment income of $16.2 million or 15.1%~~loss for the nine months ended September 30, ~~2017~~2022 was $9.0 million compared to net income of $14.3 million for the same period in ~~2016. This increase reflects the growth in average invested assets of 8.6% from the same period in 2016 and increase in average yields to 3.1%~~2021. The most significant items affecting our financial performance during the nine months ended September 30, ~~2017~~2022 on a comparative basis to 2021 included:

•underwriting loss of $19.4 million in the nine months ended September 30, 2022 compared to ~~3.0%~~underwriting income of $6.4 million in the same period in 2021 largely due to:

•favorable prior year loss development of $5.5 million for the nine months ended September 30, 2022 compared to favorable development of $23.7 million during the same period in ~~2016. Additionally, part of the increase is attributable~~2021 primarily related to the ~~call of certain securities which generated additional amortization income of $4.8 million during the period. There were no calls~~quota share reinsurance agreements in the ~~comparative period.~~AmTrust Reinsurance segment;

~~Net Premiums Written~~

~~Net premiums written decreased by $73.3~~•on a current accident year basis, underwriting loss of $24.9 million ~~or 10.6% and increased by $68.0 million, or 3.2%,~~ for the ~~three and~~ nine months ended September 30, ~~2017~~2022 compared to an underwriting loss of $17.3 million for the same ~~periods~~period in ~~2016, respectively.~~2021 primarily due to results within the AmTrust Reinsurance segment as discussed below and further within the segment analysis; and

•significantly higher than expected negative premium adjustments in the AmTrust Reinsurance segment related to adjustments for estimated surcharges on Workers' Compensation policies and inuring AmTrust reinsurance for certain programs in Specialty Risk and Extended Warranty cessions (collectively the "AmTrust Cession Adjustments" which are discussed in greater detail in the AmTrust Reinsurance segment), net of commission and loss adjustments, contributed an underwriting loss of $5.1 million to our reported results for the nine months ended September 30, 2022.

•total income from investment activities were $21.6 million for the nine months ended September 30, 2022 compared to $37.5 million for the same period in 2021 which was comprised of:

•net investment income decreased to $20.9 million for the nine months ended September 30, 2022 compared to $24.6 million for the same period in 2021, primarily due to the decline in average fixed income assets of 29.0%;

•realized and unrealized investment gains decreased to $2.8 million for the nine months ended September 30, 2022 compared to gains of $8.0 million for the same period in 2021; and

•interest in loss of equity method investments of $2.1 million for the nine months ended September 30, 2022 compared to an interest in income of equity method investments of $4.9 million for the same period in 2021.

The decrease in our results as discussed above was partially offset by the following:

•corporate general and administrative expenses decreased to $15.4 million for the nine months ended September 30, 2022 compared to $21.6 million for the same period in 2021; and

•foreign exchange and other gains increased to $19.1 million for the nine months ended September 30, 2022 compared to foreign exchange and other gains of $6.1 million for the same period in 2021.

Net Premiums Written

The tables below compare net premiums written by our reportable segments, reconciled to the total consolidated net premiums written for the three and nine months ended September 30, ~~2017~~2022 and ~~2016:~~2021:


For the Three Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total			Total			$
Diversified Reinsurance	$	6,027			$	5,816		$	211
AmTrust Reinsurance	(805)				1,137			(1,942)


Total	$	5,222			$	6,953		$	(1,731)

For the Nine Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total			Total			$
Diversified Reinsurance	$	16,605			$	10,600		$	6,005
AmTrust Reinsurance	(18,520)				(3,082)			(15,438)


Total	$	(1,915)			$	7,518		$	(9,433)

For the Three Months Ended September 30, 2017 2016 Change in
($ in thousands) Total % of Total Total % of Total $ %
Diversified Reinsurance $ 207,137
33.6 % $ 179,092
25.9 % $ 28,045
15.7 %
AmTrust Reinsurance 410,193
66.4 % 511,561
74.1 % (101,368 ) (19.8 )%
Total $ 617,330
100.0 % $ 690,653
100.0 % $ (73,323 ) (10.6 )%

For the Nine Months Ended September 30, 2017 2016 Change in
($ in thousands) Total % of Total Total % of Total $ %
Diversified Reinsurance $ 671,880
30.5 % $ 626,522
29.3 % $ 45,358
7.2 %
AmTrust Reinsurance 1,529,980
69.5 % 1,507,389
70.7 % 22,591
1.5 %
Total - reportable segments 2,201,860
100.0 % 2,133,911
100.0 % 67,949
3.2 %
Other 90
— % —
— % 90
NM
Total $ 2,201,950
100.0 % $ 2,133,911
100.0 % $ 68,039
3.2 %

~~NM - Not meaningful~~

~~The decrease in net~~Net premiums written for the three and nine months ended September 30, ~~2017~~2022 decreased to $5.2 million and $(1.9) million, respectively, compared to net premiums written of $7.0 million and $7.5 million for the same respective periods in 2021:

•Premiums written in the Diversified Reinsurance segment increased by $0.2 million and $6.0 million for the three and nine months ended September 30, 2022, respectively, compared to the same ~~period~~respective periods in ~~2016~~2021. The growth for the third quarter of 2022 was ~~the result of the following:~~

~~A decline in net~~largely due to direct premiums written ~~in our AmTrust Reinsurance segment of $101.4 million or 19.8%~~by Maiden LF and Maiden GF which ~~was mainly a result of changes, in 2017,~~increased compared to the ~~mix~~third quarter of programs in the Specialty Risk and Extended Warranty business and, in 2016, the impact of cumulative cession of premium for the first time from a series of acquisitions made by AmTrust in its Small Commercial and Specialty Program businesses as well as slower organic2021. The growth ~~overall; and~~

~~The decrease was offset by an increase in net premiums written in our Diversified Reinsurance segment of $28.0 million or 15.7% as well as the lower utilization of retrocessional capacity in 2017.~~

~~The increase in net premiums written~~ for the nine months ended September 30, ~~2017 compared~~2022 was due to the ~~same period~~prior year return of unearned premiums after the non-renewal of the German Auto Programs reinsurance contract in ~~2016 came from both the Diversified Reinsurance~~our IIS business on January 1, 2021, and ~~AmTrust Reinsurance segments. The primary reason was the reduction in the utilization of retrocessional capacity for both segments in 2017 which increased net~~direct premiums written by ~~$61.5~~Maiden LF and Maiden GF which increased compared to 2021.

•Negative written premiums in the AmTrust Reinsurance segment are primarily related to $15.8 million ~~on a consolidated basis.~~of AmTrust Cession Adjustments for the nine months ended September 30, 2022.

Please refer to the analysis below of our Diversified Reinsurance and AmTrust Reinsurance segments for further details.

Net Premiums Earned

Net premiums earned decreased by ~~$44.4~~$2.8 million or ~~6.4%~~18.5% and ~~increased by $122.6~~$16.3 million or ~~6.3%~~40.6% for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same respective periods in ~~2016, respectively.~~

2021.

The tables below compare net premiums earned by our reportable segments, reconciled to the total consolidated net premiums ~~earned:~~earned, for the three and nine months ended September 30, 2022 and 2021:


For the Three Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total		Total			$		%
Diversified Reinsurance	$	6,932	$	7,521		$	(589)	(7.8)	%
AmTrust Quota Share Reinsurance	5,319		7,509			(2,190)		(29.2)	%


Total	$	12,251	$	15,030		$	(2,779)	(18.5)	%

For the Nine Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total		Total			$		%
Diversified Reinsurance	$	20,012	$	20,723		$	(711)	(3.4)	%
AmTrust Quota Share Reinsurance	3,804		19,383			(15,579)		(80.4)	%


Total	$	23,816	$	40,106		$	(16,290)	(40.6)	%

For the Three Months Ended September 30, 2017 2016 Change in
($ in thousands) Total % of Total Total % of Total $ %
Diversified Reinsurance $ 217,513
33.3 % $ 175,141
25.1 % $ 42,372
24.2 %
AmTrust Quota Share Reinsurance 436,353
66.7 % 523,137
74.9 % (86,784 ) (16.6 )%
Total $ 653,866
100.0 % $ 698,278
100.0 % $ (44,412 ) (6.4 )%

For the Nine Months Ended September 30, 2017 2016 Change in
($ in thousands) Total % of Total Total % of Total $ %
Diversified Reinsurance $ 623,574
30.1 % $ 538,152
27.6 % $ 85,422
15.9 %
AmTrust Quota Share Reinsurance 1,450,811
69.9 % 1,413,699
72.4 % 37,112
2.6 %
Total - reportable segments 2,074,385
100.0 % 1,951,851
100.0 % 122,534
6.3 %
Other 90
— % —
— % 90
NM
Total $ 2,074,475
100.0 % $ 1,951,851
100.0 % $ 122,624
6.3 %

~~NM - Not meaningful~~

Net premiums earned in the AmTrust Reinsurance segment for the three and nine months ended September 30, ~~2017~~2022 decreased by ~~16.6% to $436.4~~$2.2 million and $15.6 million compared to the same ~~period~~respective periods in ~~2016 and modestly increased by 2.6% to $1.45 billion during the nine months ended September 30, 2017 compared~~2021 primarily due to the ~~comparative period in 2016 similar to the reasons outlined in the net premiums written section above.~~AmTrust Cession Adjustments. Please refer to the analysis of our AmTrust Reinsurance segment ~~on page 53~~ for further discussion.

Net premiums earned in ~~our~~the Diversified Reinsurance segment for the three and nine months ended September 30, ~~2017 increased~~2022 decreased by $0.6 million or 7.8% and $0.7 million or 3.4% compared to the same periods in 2016 as a result of overall growth in our Diversified Reinsurance segment's U.S. property and casualty premiums as well as a reduction in the corporate retrocessional program for 2017. These increases were offset by the commutation of a large account during the second quarter of 2017.2021, respectively. Please refer to the analysis of our Diversified Reinsurance segment ~~on page 50~~ for further discussion.

Other Insurance Revenue

All of our Other Insurance Revenue is produced by our Diversified Reinsurance segment. Please refer to ~~page 52~~the analysis below of our Diversified Reinsurance segment for further discussion.

Net Investment Income ~~and Net Realized Gains on Investment~~

~~For the three and nine months ended September 30, 2017,~~Total net investment income ~~increased~~decreased by ~~$5.2~~$0.8 million or ~~14.5%~~11.2% and ~~$16.2~~decreased by $3.7 million or 15.1% compared to the same periods in 2016, respectively, due to the growth in average invested assets of 6.6% and 8.6%, respectively. Additionally, part of the increase in net investment income is attributable to the call of certain securities during the three and nine months ended September 30, 2017, which generated additional amortization income of $0.8 million and $4.8 million, respectively. There were no calls in either of the comparative periods in 2016.

~~Net realized gains on investment were $5.9 million and $8.3 million~~ for the three and nine months ended September 30, ~~2017,~~2022, respectively, compared to ~~$1.9 million~~the same respective periods in 2021. The decline in average aggregate fixed income assets of 26.0% and ~~$4.5 million~~29.0% for the ~~same periods~~three and nine months ended September 30, 2022, respectively, was driven by the continued run-off of reinsurance liabilities previously written on prospective risks, resulting in ~~2016,~~significant negative operating cash flows as we run-off our existing reinsurance liabilities.

Net investment income was helped by an increase in annualized average book yields to 2.2% and 2.0% for the three and nine months ended September 30, 2022, respectively, compared to 1.9% and 1.9% for the three and nine months ended September 30, 2021, respectively.

The Company's shorter duration on its fixed income portfolio as well as floating rate investments held enabled it to take advantage of the higher interest rate environment by reinvesting at higher yields more quickly. The following table details ~~the Company's~~our average ~~invested~~aggregate fixed income assets (at cost) and ~~average~~annualized investment book yield for the three and nine months ended September 30, ~~2017 compared~~2022 and 2021:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
($ in thousands)	2022			2021			2022			2021
Average aggregate fixed income assets, at cost (1)	$	1,264,251		$	1,708,297		$	1,327,597		$	1,870,686
Annualized investment book yield	2.2		%	1.9		%	2.0		%	1.9		%

(1)Fixed income assets include available-for-sale ("AFS") securities, cash and restricted cash, funds held receivable, and loan to related party. These amounts are an average of the ~~same periods~~amounts disclosed in ~~2016:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
($ in thousands) 2017 2016 2017 2016
Average invested assets⁽¹⁾
$ 5,294,274
$ 4,968,685
$ 5,232,717
$ 4,819,365
Average book yield⁽²⁾
3.1 % 2.9 % 3.1 % 3.0 %


~~(1)~~	~~The average of the Company's investments, cash and cash equivalents, restricted cash and cash equivalents and loan to related party at each quarter-end during the year.~~


~~(2)~~	~~Ratio of net investment income over average invested assets at fair value.~~

our quarterly U.S. GAAP consolidated financial statements.

Net ~~Loss~~Realized and ~~Loss Adjustment Expenses~~Unrealized Investment Gains (Losses)

Net ~~loss~~realized and ~~LAE increased by $69.2~~unrealized investment losses of $1.6 million ~~or 14.8%~~ and ~~$247.8~~gains of $2.8 million ~~or 19.1%~~were recognized for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to net realized and unrealized investment losses of $0.9 million and net realized and unrealized investment gains of $8.0 million for the same respective periods in 2021. Realized gains for the nine months ended September 30, 2022 and 2021 primarily reflect sales of corporate bonds for the settlement of claim payments to AmTrust.

Net realized and unrealized investment gains for the nine months ended September 30, 2022 included the recognition of $3.7 million in unrealized gains related to an increase in the valuation of an investment in an insurtech start-up company. Net realized and unrealized investment losses and gains for the three and nine months ended September 30, 2021 included the recognition of $3.0 million in unrealized losses and $0.9 million in unrealized gains, respectively, related to an investment in an insurtech start-up company that was acquired by a special purpose acquisition company.

Interest in (Loss) Income of Equity Method Investments

The Company had interest in loss of equity method investments of $0.4 million and $2.1 million for the three and nine months ended September 30, 2022, respectively, compared to interest in loss of equity method investments of $0.8 million and an interest in income of $4.9 million for the same respective periods in 2021. Equity method investments consist of hedge fund investments of $15.4 million, real estate investments of $44.9 million and other investments of $19.8 million as of September 30, 2022. The following table details our interest in the loss or income from equity method investments for the three and nine months ended September 30, 2022 and 2021:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021

Hedge fund investments	$	(1,437)	$	(1,838)	$	(4,981)	$	1,786
Real estate investments	(24)		—		(6)		—
Other investments	1,088		1,028		2,844		3,126
Interest in (loss) income from equity method investments	$	(373)	$	(810)	$	(2,143)	$	4,912

Net Loss and LAE

Net loss and LAE increased by $6.9 million and $14.5 million during the three and nine months ended September 30, 2022, respectively, compared to the same respective periods in ~~2016, respectively.~~2021 due to net adverse prior year loss development in the AmTrust Reinsurance Segment (excluding the favorable impact of AmTrust Cession Adjustments) compared to favorable development in 2021. The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019.

~~The net~~Net loss and LAE ~~increase during~~for the ~~three months ended September 30, 2017~~third quarter of 2022 was ~~due to the following:~~

~~Adverse~~impacted by net adverse prior year loss development of ~~$77.7~~$0.8 million compared to net favorable prior year loss development of $5.4 million for the same period in 2021. Net loss and LAE for nine months ended September 30, 2022 was impacted by net favorable prior year loss development of $5.5 million compared to net favorable prior year loss development of $23.7 million during the ~~third quarter of 2017, compared to $12.4 million recorded in the comparative~~same period in ~~2016.~~2021. This net loss development ~~which~~ is discussed in greater detail in the individual segment discussion and analysis ~~was~~and is primarily associated with run-off of unearned premium for terminated reinsurance contracts in ~~our~~the AmTrust Reinsurance ~~segment, but adverse development was also experienced in our~~and Diversified Reinsurance ~~Segment~~segments.

Commission and Other ~~category;~~Acquisition Expenses

$20.0 million of losses incurred for Hurricanes Harvey and Irma during the third quarter of 2017. These preliminary estimates are based on a review of contracts potentially exposed, preliminary discussions with clients and catastrophe modeling techniques and any changes in these estimates will be recorded in the period in which it occurs. Maiden expects no impact from the Mexico earthquakes or Hurricane Maria; and

Excluding the impact of adverse development and the losses from the current year catastrophe events, our net loss and LAE ratio would have been 66.8% for the three months ended September 30, 2017 compared to 64.8% for the same period in 2016. The deterioration for the current year reflects increases we have made in our initial loss picks in both our Diversified Reinsurance and AmTrust Reinsurance segments factoring in both market conditions and recent loss trends and experience.

~~The net loss and LAE increase during the nine months ended September 30, 2017 was due to the following:~~

Adverse prior year loss development of $150.5 million during the current period 2017 compared to $41.9 million recorded in the comparative period in 2016. This development, which is discussed in greater detail in the individual segment discussion and analysis, was primarily in our AmTrust Reinsurance segment, but adverse development was also experienced in our Diversified Reinsurance Segment and Other category;

Excluding the impact of adverse development and the losses from the current year catastrophe events, our net loss and LAE ratio would have been 66.0% for the nine months ended September 30, 2017 compared to 64.0% for the same period in 2016. The deterioration in for the current year reflects increases we have made in our initial loss picks in both our Diversified Reinsurance and AmTrust Reinsurance segments factoring in both market conditions and recent loss trends and experience.

~~The impact on the net loss and LAE ratios in each period should be considered in conjunction with the commission~~Commission and other acquisition ~~expense ratio as changes to either ratio can be affected~~expenses decreased by ~~changes in the mix of business~~$0.9 million or 14.5% and the impact of the change in the commission and other acquisition expense rates on quota share contracts with loss sensitive features. As a result of these factors, as well as the adverse prior year loss development in 2017 in both the Diversified Reinsurance and AmTrust Reinsurance segments and our run-off business, the combined ratio increased by 15.6 and 8.0 points$6.3 million or 33.1% for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same respective periods in ~~2016, respectively.~~

~~Commission and Other Acquisition Expenses~~

~~Commission and other acquisition expenses decreased by $13.2 million or 6.4% and increased by $38.0 million or 6.5% for the three and nine months ended September 30, 2017 compared~~2021 largely due to ~~the same periods~~negative earned premiums in 2016, respectively. The commission and other acquisition expense ratios remained the same at 29.5% and 30.0% for the three and nine months ended September 30, 2017 and the same periods in 2016, respectively. The commission and other acquisition expense ratio is largely dependent on the mix of business within the AmTrust Reinsurance segment ~~and the mix of pro-rata and excess of loss business as well as the impact of loss sensitive features in some contracts within the Diversified Reinsurance segment. Please refer~~which reduced commission costs due to the ~~reasons for the changes~~AmTrust Cession Adjustments. Please see further discussion in the ~~combined ratio discussed in the~~ ~~Net Loss and Loss Adjustment Expenses~~ ~~section above.~~individual segment analysis below.

General and Administrative Expenses

General and administrative expenses include both segment and corporate expenses ~~which are~~ segregated for analytical purposes as a component of underwriting income. ~~General and administrative expenses consist of:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
($ in thousands) 2017 2016 2017 2016
General and administrative expenses – segments $ 9,366
$ 9,797
$ 28,059
$ 29,025
General and administrative expenses – corporate 10,126
7,155
24,193
20,713
Total general and administrative expenses $ 19,492
$ 16,952
$ 52,252
$ 49,738

Total general and administrative expenses ~~increased~~decreased by ~~$2.5~~$0.2 million, or 15.0%, for the three months ended September 30, 2017 compared to the same period in 2016. The increase in total general and administrative expenses was primarily due to increases in legal, employee related expenses, other professional fees and technology-related expenses. The general and administrative expense ratio increased to 3.0% for the three months ended September 30, 2017 from 2.4% for the three months ended September 30, ~~2016.~~

2022, compared to the same period in 2021. Total general and administrative expenses decreased by $4.9 million, or 16.5% for the nine months ended September 30, ~~2017~~2022, compared to the same period in ~~2016 similarly increased~~2021 primarily due to ~~increases in legal, other~~lower payroll and equity-based incentive staff compensation costs and lower regulatory and professional fees ~~and technology-related expenses offset by a decrease in employee related expenses. The general~~incurred.

General and administrative ~~expense ratio remained flat at 2.5%~~expenses for the three and nine months ended September 30, ~~2017~~2022 and ~~2016.~~2021 were comprised of:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
General and administrative expenses – segments	$	2,422	$	1,990	$	9,288	$	7,975
General and administrative expenses – corporate	4,069		4,660		15,383		21,578
Total general and administrative expenses	$	6,491	$	6,650	$	24,671	$	29,553

Interest and Amortization Expenses

The interest and amortization expenses related to ~~our~~ the outstanding senior notes issued by Maiden Holdings in 2016 and Maiden NA in 2013 ("Senior ~~Notes~~Notes") were $4.8 million and ~~$18.4~~$14.5 million for the three and nine months ended September 30, ~~2017 compared~~2022 and 2021, respectively. Please refer to $6.9 million and $21.3 million for the same periods in 2016, respectively. The decrease in interest expenses was due to the redemption of the 8.00% 2012 Senior Notes in June 2017 and the refinancing of the 8.25% 2011 Senior Notes with the 6.625% 2016 Senior Notes in June 2016. Refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 6.7. Long Term Debt" for further details on the ~~Company’s~~ Senior Notes. The weighted average effective interest rate for the ~~Company's debt~~Senior Notes was 7.6% ~~and 7.8%~~ for the three and nine months ended September 30, ~~2017~~2022 and 2021, respectively.

Foreign Exchange and Other Gains

Net foreign exchange and other gains amounted to $8.6 million and $19.1 million during the three and nine months ended September 30, 2022, respectively, compared to ~~7.8%~~net foreign exchange and ~~8.1%~~other gains of $4.1 million and $6.1 million for the same respective periods in ~~2016, respectively.~~2021.

~~On June 27, 2017, Maiden NA fully redeemed all~~At September 30, 2022, net foreign exchange gains were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of ~~its 2012 Senior Notes using~~foreign currency assets. Our non-USD denominated liabilities at September 30, 2022 included net loss reserves of $281.7 million. There was no new business written in non-USD currencies during the ~~proceeds from~~three and nine months ended September 30, 2022. Our foreign currency asset exposures at September 30, 2022 included $185.3 million of fixed maturity securities managed by our investment managers who have the ~~Preference Shares - Series D issuance. The 2012 Senior Notes were redeemed at a redemption price equal~~discretion to ~~100%~~hold foreign currency exposures as part of ~~the principal amount~~their total return strategy as well as $24.9 million of ~~$100.0 million 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~~equity method real estate investments denominated in Canadian dollars.

Net foreign exchange gains of ~~the remaining 2012 Senior Note issuance cost of $2.8 million.~~

~~Income Tax Expense~~

~~The Company recorded income tax expense of $0.3~~$8.6 million and ~~$1.0~~$20.5 million for the three and nine months ended September 30, ~~2017~~2022, respectively, were attributable to the strengthening of the U.S. dollar on the re-measurement of net loss reserves and ~~$0.2~~insurance related liabilities denominated in British pound and euro. Net foreign exchange gains of $4.1 million and ~~$1.2~~$6.3 million for the same periods in 2016, respectively. These amounts relate to income tax on the earnings of our international subsidiaries, non-cash U.S. deferred tax expense relating to timing differences and state taxes incurred by our U.S. subsidiaries.

~~Dividends on Preference Shares~~

~~For~~during the three and nine months ended September 30, ~~2017, dividends paid to preference shareholders decreased by $0.5 million or 5.3% and $7.1 million or 25.7% compared to the same periods in 2016, respectively. The decrease is~~2021 were attributable to the ~~conversion~~strengthening of the Mandatory Convertible Preference Shares - Series B on September 15, 2016. The decrease for both the three and nine months ended September 30, 2017, however, was offset by the $2.5 million of dividends paid to 6.70% Preference Shares - Series D (the "Preference Shares - Series D") (see discussion below) during the third quarter of 2017.

~~On June 15, 2017, the Company issued a total of 6,000,000, Preference Shares – Series D, par value $0.01 per share, at a price of $25 per preference share. Refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 11. Shareholders' Equity" for details~~U.S. dollar on the ~~Company’s preference shares.~~re-measurement of net loss reserves and insurance related liabilities denominated in British pound and euro.

Underwriting Results by Reportable Segment

Diversified Reinsurance Segment

The underwriting results ~~and associated underwriting ratios~~ for ~~the~~our Diversified Reinsurance segment ~~were as follows:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
($ in thousands) 2017 2016 2017 2016
Gross premiums written $ 210,953
$ 186,750
$ 683,839
$ 667,388
Net premiums written 207,137
179,092
671,880
626,522
Net premiums earned 217,513
175,141
623,574
538,152
Other insurance revenue 2,488
2,345
7,816
8,696
Net loss and LAE (172,273 ) (132,396 ) (487,759 ) (395,718 )
Commission and other acquisition expenses (54,810 ) (39,868 ) (159,744 ) (139,895 )
General and administrative expenses (8,595 ) (9,038 ) (25,819 ) (26,717 )
Underwriting loss $ (15,677 ) $ (3,816 ) $ (41,932 ) $ (15,482 )
Ratios
Net loss and LAE ratio 78.3 % 74.6 % 77.2 % 72.4 %
Commission and other acquisition expense ratio 24.9 % 22.5 % 25.3 % 25.6 %
General and administrative expense ratio 3.9 % 5.1 % 4.1 % 4.8 %
Expense ratio 28.8 % 27.6 % 29.4 % 30.4 %
Combined ratio 107.1 % 102.2 % 106.6 % 102.8 %

~~The combined ratio~~ for the three and nine months ended September 30, ~~2017 increased to 107.1%~~2022 and ~~106.6% compared to 102.2% and 102.8% in the same periods in 2016, respectively. The combined ratio increase during the three months ended September 30, 2017 was due to the following:~~2021 were as follows:

~~$15.0 million of losses incurred for Hurricanes Harvey and Irma during the third quarter of 2017;~~


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Gross premiums written	$	6,185	$	5,684	$	17,069	$	10,947
Net premiums written	$	6,027	$	5,816	$	16,605	$	10,600
Net premiums earned	$	6,932	$	7,521	$	20,012	$	20,723
Other insurance revenue	368		138		888		946
Net loss and LAE	(1,965)		(554)		(2,945)		(3,216)
Commission and other acquisition expenses	(3,394)		(3,461)		(10,684)		(11,668)
General and administrative expenses	(1,901)		(1,583)		(7,007)		(6,190)
Underwriting income	$	40	$	2,061	$	264	$	595

Adverse prior year loss development of $7.9 million during the third quarter of 2017, compared to $10.4 million recorded in the same period in 2016. The third quarter 2017 activity was largely from commercial auto excess from the 2014 underwriting year as well as other liability excess of loss. The adverse development during the third quarter 2016 was primarily from the commercial auto line of business; and

Excluding the impact of catastrophe events and prior year loss development, the combined ratio for the third quarter 2017 would have been 96.7% compared to 96.3% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

~~The increase in the combined ratio for the nine months ended September 30, 2017 was due to the following:~~

Adverse prior year loss development of $39.5 million during 2017, compared to $37.4 million recorded in the same period in 2016. The 2017 development was largely due to a higher than expected loss emergence emanating largely from facultative commercial auto as well as certain specific contracts across several lines of business, with over half of the development coming from three accounts. The 2016 adverse development was primarily from the commercial auto line of business;

~~$15.0 million of losses incurred for Hurricanes Harvey and Irma; and~~

Excluding the catastrophe events and prior year loss development, the combined ratio for the current period 2017 would have been 98.0% compared to 96.0% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

Premiums -— Gross premiums written increased by ~~$24.2~~$0.5 million ~~or 13.0%~~ and ~~$16.5~~$6.1 million ~~or 2.5%~~ for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same respective periods in ~~2016, respectively. The increases were~~2021. Gross premiums written for the nine months ended September 30, 2022 increased primarily due to ~~growth resulting from existing client accounts~~the prior year return of unearned premiums written in a German Auto quota share reinsurance contract in our IIS business which went into run-off on January 1, 2021. Direct premiums written by Maiden LF and ~~premium from new customers~~Maiden GF increased by $0.8 million or 14.9% and $1.2 million or 7.4% during the three and nine months ended September 30, ~~2017, which was offset by~~2022, respectively, compared to the ~~commutation and return of the unearned premium of a large account during the second quarter of 2017.~~same respective periods in 2021.

Net premiums written increased by ~~$28.0~~$0.2 million ~~or 15.7%~~and $6.0 million during the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same ~~period~~respective periods in ~~2016 mainly due to growth from all sub-segments as well as the lower utilization of retrocessional capacity.~~

2021. Net premiums written for the nine months ended September 30, ~~2017~~2022 increased primarily due to the prior year return of unearned premiums written in our German Auto quota share reinsurance contract which went into run-off on January 1, 2021.

Net premiums earned decreased by $0.6 million or 7.8% and $0.7 million or 3.4% during the three and nine months ended September 30, 2022, respectively, compared to the same respective periods in 2021.

Other Insurance Revenue—Other insurance revenue increased by ~~$45.4~~$0.2 million ~~or 7.2%~~and decreased by $0.1 million for the three and nine months ended September 30, 2022, respectively, compared to the same respective periods in 2021. Other insurance revenue includes fee related income earned from our GLS business, fair value changes in underwriting-related derivatives, and fee income derived from our IIS business not directly associated with premium revenue assumed by the Company as ~~a result of the reduction~~specified in the ~~corporate retrocessional program for 2017 and new business written offset by the commutation referred to in the preceding paragraph.~~

table below. The ~~table below shows net premiums written by line~~decline of other insurance revenue from International business for the three and nine months ended September 30, ~~2017 and 2016:~~

For the Three Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Written ($ in thousands) ($ in thousands) ($ in thousands)
Property $ 37,962
18.3 % $ 30,606
17.1 % $ 7,356
24.0 %
Casualty 129,726
62.6 % 115,360
64.4 % 14,366
12.5 %
Accident and Health 16,946
8.2 % 14,845
8.3 % 2,101
14.2 %
International 22,503
10.9 % 18,281
10.2 % 4,222
23.1 %
Total Diversified Reinsurance $ 207,137
100.0 % $ 179,092
100.0 % $ 28,045
15.7 %

For the Nine Months Ended September 30, 2017
2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Written ($ in thousands) ($ in thousands) ($ in thousands)
Property $ 132,398
19.7 % $ 123,991
19.8 % $ 8,407
6.8 %
Casualty 391,503
58.3 % 365,332
58.3 % 26,171
7.2 %
Accident and Health 74,504
11.1 % 68,140
10.9 % 6,364
9.3 %
International 73,475
10.9 % 69,059
11.0 % 4,416
6.4 %
Total Diversified Reinsurance $ 671,880
100.0 % $ 626,522
100.0 % $ 45,358
7.2 %

~~Net premiums earned increased by $42.4 million or 24.2% and $85.4 million or 15.9% during the three and nine months ended September 30, 2017 compared~~2022 was due to the ~~same periods in 2016, respectively.~~loss of fee income from an auto customer program that went into run-off on July 31, 2021. The table below shows ~~net premiums earned~~other insurance revenue by ~~line of business:~~

For the Three Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Earned ($ in thousands) ($ in thousands) ($ in thousands)
Property $ 43,362
19.9 % $ 29,921
17.1 % $ 13,441
44.9 %
Casualty 130,428
60.0 % 105,893
60.5 % 24,535
23.2 %
Accident and Health 22,780
10.5 % 18,436
10.5 % 4,344
23.6 %
International 20,943
9.6 % 20,891
11.9 % 52
0.2 %
Total Diversified Reinsurance $ 217,513
100.0 % $ 175,141
100.0 % $ 42,372
24.2 %

For the Nine Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Earned ($ in thousands) ($ in thousands) ($ in thousands)
Property $ 122,888
19.7 % $ 103,023
19.1 % $ 19,865
19.3 %
Casualty 375,141
60.2 % 313,736
58.3 % 61,405
19.6 %
Accident and Health 63,878
10.2 % 55,788
10.4 % 8,090
14.5 %
International 61,667
9.9 % 65,605
12.2 % (3,938 ) (6.0 )%
Total Diversified Reinsurance $ 623,574
100.0 % $ 538,152
100.0 % $ 85,422
15.9 %

~~Within our Diversified Reinsurance segment, the business written by Maiden US experienced an increase in net premiums earned~~source for the three and nine months ended September 30, ~~2017 compared to the same periods in 2016 due to overall growth in all sub-segments as well as a reduction in the corporate retrocessional program for 2017. These increases were offset by the~~2022 and 2021:


For the Three Months Ended September 30,	2022		2021		Change
	($ in thousands)
International	$	24	$	61	$	(37)
Changes in fair value of non-hedged derivatives on retroactive reinsurance	306		—		306
Other service fee income	38		77		(39)
Total Diversified Reinsurance	$	368	$	138	$	230

For the Nine Months Ended September 30,	2022		2021		Change
	($ in thousands)
International	$	44	$	714	$	(670)
Changes in fair value of non-hedged derivatives on retroactive reinsurance	699		—		699
Other service fee income	145		232		(87)
Total Diversified Reinsurance	$	888	$	946	$	(58)

commutation of a large account during the second quarter of 2017 and further reduced by the decline in earned premiums from the International business of $4.0 million during the nine months ended September 30, 2017 compared to the same period in 2016.

~~Other Insurance Revenue~~ - Other insurance revenue, which represents fee income that is not directly associated with premium revenue assumed by the Company increased by $0.1 million for the three months ended September 30, 2017 and decreased by $0.9 million for the nine months ended September 30, 2017 compared to the same periods in 2016, respectively.

Net Loss and ~~Loss Adjustment Expenses~~ -LAE— Net loss and LAE increased by ~~$39.9~~$1.4 million ~~or 30.1%~~ and ~~$92.0~~decreased by $0.3 million ~~or 23.3%~~ for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same respective periods in ~~2016, respectively.~~2021 primarily due to lower favorable prior year development on German Auto programs and adverse development in European Capital Solutions.

~~Net~~

The net loss and LAE ~~ratios were 78.3%~~was impacted by net favorable prior year loss development of $0.6 million and ~~77.2%~~$2.0 million for the three and nine months ended September 30, 2022, respectively, compared to favorable prior year development of $1.7 million and $2.6 million for the same respective periods in 2021. The net favorable loss development for the three and nine months ended September 30, 2022 was driven by German Auto and GLS partly offset by adverse development in European Capital Solutions. The favorable loss development for the same respective periods in 2021 was experienced in German Auto Programs, European Capital Solutions and other run-off business.

Commission and Other Acquisition Expenses— Commission and other acquisition expenses decreased by $0.1 million or 1.9% and $1.0 million or 8.4% for the three and nine months ended September 30, ~~2017~~2022, respectively, compared ~~with 74.6% and 72.4% during~~to the same respective periods in ~~2016, respectively.~~2021. The lower commission expense was largely related to an auto customer program that went into run-off on July 31, 2021.

~~The net loss~~General and ~~LAE ratio increase during~~Administrative Expenses— General and administrative expenses increased by $0.3 million or 20.1% for the three months ended September 30, ~~2017 was due to the following:~~

~~$15.0~~2022 and increased by $0.8 million ~~of losses incurred for Hurricanes Harvey and Irma during the third quarter of 2017;~~

Excluding the impact of catastrophe events and prior year loss development, the net loss and LAE ratio for the third quarter 2017 would have been 67.9% compared to 68.7% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

~~The net loss and LAE ratio increase~~or 13.2% for the nine months ended September 30, ~~2017 was due to the following:~~

~~$15.0 million of losses incurred for Hurricanes Harvey and Irma; and~~

Excluding the catastrophe events and prior year loss development, the net loss and LAE ratio for 2017 would have been 68.6% compared to 65.5% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

The impact on the net loss and LAE ratios should be considered in conjunction with the commission and other acquisition expense ratio as changes to either ratio can be effected by the changes in the mix of business and the impact of the increase in the commission and other acquisition expense rates on pro-rata contracts with loss sensitive features. As a result of these factors, as well as the impacts on the loss ratio described above, the combined ratio increased by 4.9 and 3.8 points for the three and nine months ended September 30, 20172022, respectively, compared to the same respective periods in ~~2016, respectively.~~

~~Commission and Other Acquisition Expenses~~ - Commission and other acquisition expenses increased by $14.9 million or 37.5% and $19.8 million or 14.2% for the three and nine months ended September 30, 2017 compared to the same periods in 2016, respectively. The increase in ratios for the three and nine months ended September 30, 2017 was primarily due to the change in the mix of pro rata versus excess of loss premiums written. Please refer to the reasons for the changes in the combined ratio discussed in the preceding paragraph.

~~General and Administrative Expenses~~ - General and administrative expenses decreased by $0.4 million or 4.9% and $0.9 million or 3.4% for the three and nine months ended September 30, 2017 compared to the same periods in 2016, respectively. The general and administrative expense ratio was 3.9% and 4.1% for the three and nine months ended September 30, 2017 compared to 5.1% and 4.8% for the same periods in 2016, respectively. The overall expense ratio (including commission and other acquisition expenses) for the three and nine months ended September 30, 2017 was 28.8% and 29.4% compared to 27.6% and 30.4% for the same periods in 2016, respectively.

2021.

AmTrust Reinsurance Segment

The AmTrust Reinsurance segment reported an underwriting loss of ~~$58.1~~$12.7 million and ~~$64.4~~$19.7 million during the three and nine months ended September 30, ~~2017,~~2022, respectively, compared to an underwriting loss of $5.7 million and underwriting income of ~~$21.2~~$5.8 million ~~and $65.1 million in~~for the ~~comparative~~same respective periods in ~~2016, respectively.~~2021.

The AmTrust Cession Adjustments contributed an underwriting loss of $5.1 million to the reported results during the nine months ended September 30, 2022; excluding these adjustments, the AmTrust Reinsurance segment had an underwriting loss of $14.6 million on the run-off of unearned premium for terminated AmTrust reinsurance contracts. The underwriting results ~~and associated ratios~~ for the AmTrust Reinsurance segment for the three and nine months ended September 30, ~~2017~~2022 and ~~2016~~2021 were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Gross premiums written	$	(805)	$	1,137	$	(18,520)	$	(3,082)
Net premiums written	$	(805)	$	1,137	$	(18,520)	$	(3,082)
Net premiums earned	$	5,319	$	7,509	$	3,804	$	19,383
Net loss and LAE	(15,461)		(9,960)		(19,072)		(4,330)
Commission and other acquisition expenses	(2,004)		(2,852)		(2,127)		(7,486)
General and administrative expenses	(521)		(407)		(2,281)		(1,785)
Underwriting (loss) income	$	(12,667)	$	(5,710)	$	(19,676)	$	5,782

For the Three Months Ended September 30, For the Nine Months Ended September 30,
($ in thousands) 2017 2016 2017 2016
Gross premiums written $ 420,019
$ 520,104
$ 1,575,677
$ 1,591,902
Net premiums written 410,193
511,561
1,529,980
1,507,389
Net premiums earned 436,353
523,137
1,450,811
1,413,699
Net loss and LAE (355,030 ) (334,310 ) (1,047,222 ) (898,703 )
Commission and other acquisition expenses (138,650 ) (166,836 ) (465,789 ) (447,604 )
General and administrative expenses (771 ) (759 ) (2,240 ) (2,308 )
Underwriting (loss) income $ (58,098 ) $ 21,232
$ (64,440 ) $ 65,084
Ratios
Net loss and LAE ratio 81.4 % 63.9 % 72.2 % 63.5 %
Commission and other acquisition expense ratio 31.7 % 31.9 % 32.1 % 31.7 %
General and administrative expense ratio 0.2 % 0.1 % 0.1 % 0.2 %
Expense ratio 31.9 % 32.0 % 32.2 % 31.9 %
Combined ratio 113.3 % 95.9 % 104.4 % 95.4 %

Premiums—The ~~AmTrust Reinsurance segment experienced an increase in the combined ratio to 113.3% for the three months ended September 30, 2017 compared to 95.9% for the same period in 2016, due to the following:~~

Adverse prior year loss development of $61.1 million during the third quarter 2017, compared to $2.0 million recorded in the same period in 2016. The third quarter 2017 activity was largely from the general liability line of business as well as auto liability and workers compensation lines of business for both Specialty Programs and Small Commercial where elevated loss activity has been observed. $16.2 million of the third quarter of 2017 adverse loss development came from one program which was terminated by AmTrust on September 1, 2017.

~~During the third quarter of 2017, the AmTrust Reinsurance segment recognized total estimated losses from Hurricanes Harvey and Irma of $5.0 million.~~

Excluding the catastrophe events and prior year loss development, the combined ratio for the current period in 2017 would have been 98.2% compared to 95.6% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

The AmTrust Reinsurance segment experienced an increase in the combined ratio to 104.4% for the nine months ended September 30, 2017 compared to 95.4% during the same period in 2016 due to the following:

Adverse prior year loss development of $100.9 million compared to $1.5 million recorded in 2016. Similar to the third quarter activity, the year to date 2017 activity was largely from the general liability line of business as well as auto liability and workers compensation lines of business for both Specialty Programs and Small Commercial where elevated loss activity has been observed.

~~During the current period, the AmTrust Reinsurance segment recognized total estimated losses from Hurricanes Harvey and Irma of $5.0 million.~~

Excluding the catastrophe events and prior year loss development, the combined ratio for the current period in 2017 was 97.1% compared to 95.3% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.

~~Premiums~~ - ~~Gross~~tables below show net premiums written ~~decreased~~ by ~~$100.1 million or 19.2% and $16.2 million or 1.0%~~category for the three and nine months ended September 30, ~~2017 compared to the same periods in 2016, respectively.~~2022 and 2021, respectively:


For the Three Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total			Total			$
Net Premiums Written
Small Commercial Business	$	(636)			$	(1,309)		$	673
Specialty Program	(43)				22			(65)
Specialty Risk and Extended Warranty	(126)				2,424			(2,550)
Total AmTrust Reinsurance	$	(805)			$	1,137		$	(1,942)

For the Nine Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total			Total			$
Net Premiums Written
Small Commercial Business	$	(15,007)			$	(5,381)		$	(9,626)
Specialty Program	732				(7)			739
Specialty Risk and Extended Warranty	(4,245)				2,306			(6,551)
Total AmTrust Reinsurance	$	(18,520)			$	(3,082)		$	(15,438)

The ~~decrease in~~negative gross ~~premiums written for the three months ended September 30, 2017 compared to the same period in 2016 was the result of changes, in 2017, to the mix of programs in the Specialty Risk~~ and Extended Warranty business and, in 2016, the cumulative cession of premium for the first time from a series of acquisitions made by AmTrust in its Small Commercial and Specialty Program businesses as well as slower organic growth.

~~The decrease in gross~~net premiums written for the nine months ended September 30, ~~2017 compared~~2022 reflect the AmTrust Cession Adjustments which consist of higher than expected adjustments related to the ~~same period~~following items:

•$11.0 million of premium reductions on Workers Compensation policy surcharges in ~~2016 reflects slower organic growth overall as well as reductions AmTrust's Specialty Program segment and~~ Small Commercial ~~non-workers’ compensation business reflecting underwriting initiatives focused on improving~~Business subsequent to the ~~profitability~~termination of ~~these classes~~the AmTrust Quota Share; and

•$4.8 million of ~~business.~~premium reductions to AmTrust's inuring reinsurance for certain programs in Specialty Risk and Extended Warranty which reduced the amount of premium ceded to Maiden.

~~The table below shows~~There were also negative gross and net premiums written ~~by line of business~~ for the three and nine months ended September 30, ~~2017~~2021 reflecting premium adjustments on Small Commercial Business policies in the AmTrust Quota Share. Furthermore, the termination of the AmTrust Quota Share and ~~2016:~~

For the Three Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Written ($ in thousands) ($ in thousands) ($ in thousands)
Small Commercial Business $ 295,499
72.0 % $ 314,677
61.5 % $ (19,178 ) (6.1 )%
Specialty Program 63,816
15.6 % 98,895
19.3 % (35,079 ) (35.5 )%
Specialty Risk and Extended Warranty 50,878
12.4 % 97,989
19.2 % (47,111 ) (48.1 )%
Total AmTrust Reinsurance $ 410,193
100.0 % $ 511,561
100.0 % $ (101,368 ) (19.8 )%

For the Nine Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Written ($ in thousands) ($ in thousands) ($ in thousands)
Small Commercial Business $ 1,028,905
67.3 % $ 983,601
65.3 % $ 45,304
4.6 %
Specialty Program 255,767
16.7 % 268,193
17.8 % (12,426 ) (4.6 )%
Specialty Risk and Extended Warranty 245,308
16.0 % 255,595
16.9 % (10,287 ) (4.0 )%
Total AmTrust Reinsurance $ 1,529,980
100.0 % $ 1,507,389
100.0 % $ 22,591
1.5 %

~~Net premiums~~the European Hospital Liability Quota Share as of January 1, 2019 resulted in no new business written in our AmTrust Reinsurance segment for the three months ended September 30, 2017 decreased by $101.4 million or 19.8% and increased by $22.6 million or 1.5% during the nine months ended September 30, 2017 compared to the same periods in 2016, respectively. See gross premiums written section above for details. The retroceded premiums increased by $1.3 million and decreased by $38.8 million during the three and nine months ended September 30, 2017 compared to the same periods in 2016, respectively.under these contracts since 2018.

Net premiums earned decreased by ~~$86.8~~$2.2 million ~~or 16.6%~~ and ~~increased by $37.1~~$15.6 million ~~or 2.6%~~ for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same respective periods in ~~2016, respectively. See~~2021 primarily due to the AmTrust Cession Adjustments as discussed above and due to termination of the AmTrust Quota Share and European Hospital Liability Quota Share as of January 1, 2019. Excluding AmTrust Cession Adjustments of $15.8 million, net premiums ~~written section above~~earned were $19.6 million for ~~details in~~ the ~~movement in earned premium. The retroceded premiums earned increased by $6.0 million and decreased by $10.6 million during the three and~~ nine months ended September 30, ~~2017~~2022 compared to $19.4 million for the same ~~periods~~period in ~~2016, respectively.~~

~~The table below details net~~2021. There were negative premiums earned ~~by line of business~~ for the three and nine months ended September 30, ~~2017~~2022 and ~~2016:~~2021 in Small Commercial Business due to premium adjustments on such policies in the AmTrust Quota Share.

For the Three Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Earned ($ in thousands) ($ in thousands) ($ in thousands)
Small Commercial Business $ 314,773
72.1 % $ 320,596
61.3 % $ (5,823 ) (1.8 )%
Specialty Program 59,143
13.6 % 89,856
17.2 % (30,713 ) (34.2 )%
Specialty Risk and Extended Warranty 62,437
14.3 % 112,685
21.5 % (50,248 ) (44.6 )%
Total AmTrust Reinsurance $ 436,353
100.0 % $ 523,137
100.0 % $ (86,784 ) (16.6 )%

For the Nine Months Ended September 30, 2017 2016 Change in
Total % of Total Total % of Total $ %
Net Premiums Earned ($ in thousands) ($ in thousands) ($ in thousands)
Small Commercial Business $ 946,782
65.3 % $ 864,699
61.2 % $ 82,083
9.5 %
Specialty Program 251,153
17.3 % 251,543
17.8 % (390 ) (0.2 )%
Specialty Risk and Extended Warranty 252,876
17.4 % 297,457
21.0 % (44,581 ) (15.0 )%
Total AmTrust Reinsurance $ 1,450,811
100.0 % $ 1,413,699
100.0 % $ 37,112
2.6 %

~~Net Loss and Loss Adjustment Expenses~~ - ~~Net loss and LAE increased by $20.7 million or 6.2% and $148.5 million or 16.5%~~The tables below provide detail on net premiums earned for the three and nine months ended September 30, ~~2017 compared to the same periods in 2016, respectively.~~2022 and 2021:


For the Three Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total		Total		$
Net Premiums Earned
Small Commercial Business	$	(636)	$	(1,227)	$	591
Specialty Program	(43)		28		(71)
Specialty Risk and Extended Warranty	5,998		8,708		(2,710)
Total AmTrust Reinsurance	$	5,319	$	7,509	$	(2,190)

For the Nine Months Ended September 30,	2022		2021		Change in
($ in thousands)	Total		Total		$
Net Premiums Earned
Small Commercial Business	$	(14,995)	$	(5,073)	$	(9,922)
Specialty Program	733		12		721
Specialty Risk and Extended Warranty	18,066		24,444		(6,378)
Total AmTrust Reinsurance	$	3,804	$	19,383	$	(15,579)

Net Loss and LAE— Net loss and LAE ~~ratios were 81.4%~~increased by $5.5 million and ~~72.2%~~$14.7 million for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to ~~63.9% and 63.5% for~~ the same respective periods in ~~2016, respectively.~~2021 primarily due to net adverse prior year loss development (excluding the favorable impact of AmTrust Cession Adjustments) in 2022 compared to favorable development in 2021 as discussed below.

~~The net~~Net adverse prior year loss ~~and LAE ratio~~development was $1.4 million during the three months ended September 30, ~~2017 increased primarily as a result of the following:~~

~~Adverse~~2022, compared to favorable prior year loss development of ~~$61.1~~$3.7 million ~~during the third quarter 2017, compared to $2.0 million recorded in~~for the same period in 2016. The third quarter 2017 activity was largely from the general liability line of business as well as auto liability and workers compensation lines of business for both Specialty Programs and Small Commercial where elevated loss activity has been observed. $16.2 million of the third quarter 20172021. Net adverse ~~development came from one program which was terminated by AmTrust on September 1, 2017;~~

~~During the third quarter of 2017, the AmTrust Reinsurance segment recognized total estimated losses from Hurricanes Harvey and Irma of $5.0 million; and~~

~~Excluding the catastrophe events and~~ prior year loss development ~~the net loss and LAE ratio~~ for the ~~current~~three months ended September 30, 2022 was driven by unfavorable movements in European Hospital Liability due to higher than expected loss emergence in Italian Hospital Liability policies as well as the agreed exit cost of $3.7 million (€3.4 million) for the commutation of French Hospital Liability policies as described in "Note 10. Related Party Transactions"; partly offset by favorable runoff of Workers Compensation business. Net favorable prior year loss development for the three months ended September 30, 2021 was driven by favorable development in Workers Compensation and Commercial Auto Liability.

Net favorable prior year loss development was $3.5 million during the nine months ended September 30, 2022, compared to net favorable prior year loss development of $21.1 million for the same period in ~~2017 would have been 66.2% compared to 63.5% for 2016, reflecting higher initial expected~~2021. Net favorable prior year loss ~~ratios for premiums earned~~development of $3.5 million during the ~~period.~~

~~The net~~nine months ended September 30, 2022 included $5.3 million of favorable loss ~~and LAE ratio~~reserve adjustments related to the AmTrust Cession Adjustments. Excluding these adjustments, there was adverse development of $1.8 million for the nine months ended September 30, ~~2017 increased primarily~~2022 driven by unfavorable movements in European Hospital Liability due to ~~the following:~~

~~Adverse prior year~~higher than expected loss ~~development of $100.9 million during 2017, compared to $1.5 million recorded~~emergence in ~~2016. Similar to the third quarter , the year to date 2017 adverse development was largely from the general liability line of business~~Italian Hospital Liability policies as well as ~~auto liability and workers compensation lines~~the agreed exit cost of ~~business~~$3.7 million (€3.4 million) for ~~both Specialty Programs and Small Commercial where elevated loss activity has been observed;~~

~~During~~ the ~~third quarter~~commutation of ~~2017, the AmTrust Reinsurance segment recognized total estimated losses from Hurricanes Harvey and Irma~~French Hospital Liability policies as described in "Note 10. Related Party Transactions". This was partly offset by favorable runoff of ~~$5.0 million; and~~

~~Excluding the catastrophe events and prior~~Workers Compensation business. Prior year favorable loss development ~~the net loss~~in 2021 was due to Workers Compensation and ~~LAE ratio for the current period~~Commercial Auto Liability partly offset by adverse development in ~~2017 was 64.9% compared to 63.5% for 2016, reflecting higher initial expected loss ratios for premiums earned during the period.~~Hospital Liability.

Commission and Other Acquisition Expenses -— Commission and other acquisition expenses decreased by ~~$28.2~~$0.8 million ~~or 16.9%~~ and ~~increased by $18.2~~$5.4 million ~~or 4.1%~~ for the three and nine months ended September 30, ~~2017~~2022, respectively, compared to the same periods in ~~2016, respectively. The~~2021 due to the AmTrust Cession Adjustments which resulted in negative earned premiums and a reduction to brokerage fees. Excluding AmTrust Cession Adjustments of $5.4 million, commission and other acquisition ~~expense ratio decreased~~expenses were $7.5 million for the nine months ended September 30, 2022 compared to ~~31.7%~~$7.5 million for the same period in 2021.

General and Administrative Expenses— General and administrative expenses increased ~~to 32.1%~~by $0.1 million or 28.0% and $0.5 million or 27.8% for the three and nine months ended September 30, ~~2017,~~2022, respectively, compared to 31.9% and 31.7% during the three and nine months ended September 30, 2016, respectively. The fluctuations in the ratios during the three and nine months ended September 30, 2017 compared to the comparative periods in 2016 reflect the change in the mix of business. The commission ratio is also affected by the commission associated with the retrocession premium ceded during the three and nine months ended September 30, 2017 versus the same periods in 2016.

~~General and Administrative Expenses~~ - ~~General and administrative expenses increased by 1.6% and decreased by 2.9%, for the three and nine months ended September 30, 2017~~ compared to the same respective periods in ~~2016, respectively. The general and administrative expense ratio increased slightly~~2021 primarily due to ~~0.2% and decreased slightly to 0.1% for~~higher letter of credit fees associated with the three and nine months ended September 30, 2017 from 0.1% and 0.2% during the three and nine months ended September 30, 2016, respectively. The overall expense ratio (including commission and other acquisition expenses) was 31.9% and 32.2% for the three and nine months ended September 30, 2017 compared to 32.0% and 31.9% for the three and nine months ended September 30, 2016, respectively.LPT/ADC Agreement.

Liquidity and Capital Resources

Liquidity

Maiden Holdings is a holding company and transacts no business of its own. We therefore rely on cash flows in the form of dividends, advances, loans and other permitted distributions from our subsidiary companies to pay expenses and make dividend payments on our common and preference shares. The jurisdictions in which our operating subsidiaries are licensed to write business impose regulations requiring companies to maintain or meet statutory solvency and liquidity ~~requirements. Some jurisdictions~~requirements and also place restrictions on the declaration and payment of dividends and other distributions.

As of September 30, 2022, the Company had investable assets of $1.4 billion compared to $1.7 billion as of December 31, 2021. Investable assets are the combined total of our investments, cash and cash equivalents (including restricted cash), loan to a related party and funds withheld receivable. The decrease in our investable assets is primarily the result of our cessation of active reinsurance underwriting of new prospective risks in 2018 and 2019 which subsequently resulted in negative operating cash flows to settle claim payments from the run-off of the liabilities from that reinsurance portfolio in 2022.

The regulatory and liquidity requirements of the Company's operating segments are discussed in ~~"Management's~~"Management's Discussionand Analysis of Financial Condition and Results of Operations" section included under Item 7 of our Annual Report on Form 10- K for the year ended December 31, ~~2016,~~2021, that was filed with the SEC on March ~~6, 2017.~~14, 2022.

As previously indicated, Maiden Reinsurance re-domesticated from Bermuda to Vermont on March 16, 2020. We continue to be actively engaged with the Vermont Department of Financial Regulation ("Vermont DFR") regarding the formulation of Maiden Reinsurance's longer term business plan, including its investment policy, changes to which require prior regulatory approval as stipulated by Vermont law or the Vermont DFR for any active underwriting, capital management or other strategic initiatives. Maiden Reinsurance has received all necessary approvals required to date by the Vermont DFR, including its activities via GLS and its investment policy which includes: 1) the expansion of approved asset classes for investment reflecting not only Maiden Reinsurance’s solvency position but the material reduction in required capital necessary to operate its business as discussed further in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity & Capital Resources – Cash and Investments; and 2) the purchase of affiliated securities as demonstrated in the recent preference share tender offers. The Investment Policy, as approved and as amended, maintains our established investment management and governance practices.

During the second quarter of 2022, the Vermont DFR approved an annual dividend program to be paid by Maiden Reinsurance to Maiden NA, with notification to the Vermont DFR as dividends are paid. Subsequent to that approval, Maiden Reinsurance has paid $12.5 million in dividends to Maiden NA during the nine months ended September 30, 2022.

We may experience continued volatility in our results of operations which could negatively impact our financial condition and create a reduction in the amount of available distribution or dividend capacity from our regulated reinsurance subsidiaries, which would also reduce liquidity. Further, we and our insurance subsidiaries may need additional capital to maintain compliance with regulatory capital requirements and/or be required to post additional collateral under existing reinsurance arrangements, which could reduce our liquidity.

Operating, investing and financing cash flows

Our sources of funds ~~primarily consist~~historically have consisted of premium receipts net of commissions and brokerage, investment income, net proceeds from capital raising activities, ~~which may include the issuance of debt and common and preference shares,~~ and proceeds from sales, maturities, pay downs and redemption of investments. Cash is currently used primarily to pay loss and LAE, ceded reinsurance premium, general and administrative expenses, and interest expense, ~~and dividends,~~ with the remainder in excess of our operating requirements made available to our investment managers for investment in accordance with our investment ~~policy.~~policy as well as for capital management such as repurchasing our shares.

Our business has undergone significant changes since 2018. We have entered into a series of transactions that have materially reduced our balance sheet risk and transformed our operations. As a result of these transactions, we are not engaged in active underwriting of new prospective risks thus our net premiums written will continue to be materially lower and investment income will become a significantly larger portion of our total revenues. We are writing new retroactive risks through GLS, however this will be smaller in relation to the run-off of our prior reinsurance business. Despite the initial inflow of new business from GLS, the run-off of our prior reinsurance business has continued to cause significant negative operating cash flows as we run off the AmTrust Reinsurance segment reserves as shown in the cash flows table further below.

While the development of the GLS platform over time should further enhance our ability to pursue the asset and capital management pillars of our business strategy, we still expect the trend of negative overall cash flows to continue to reduce our asset base going forward through the remainder of 2022 and beyond.

We expect to use funds from cash and investment portfolios, collected premiums on reinsurance contracts in force or being run-off, investment income and proceeds from investment sales and redemptions to meet our expected claims payments and operational expenses. Claim payments will be principally from the run-off of existing reserves for loss and LAE. A significant portion of those liabilities are collateralized and claim payments will be funded by using this collateral which should provide sufficient funding to fulfill those obligations.

The Company’s management believes its current sources of liquidity are adequate to meet its cash requirements for the next twelve months as we generally expect negative operating cash flows to be sufficiently offset by positive investing cash flows. While we continue to expect our cash flows to be sufficient to meet our cash requirements and to operate our business, our ability to execute our asset and capital management initiatives are dependent on maintaining adequate levels of unrestricted liquidity and cash flows. Our expanded asset management strategy can be impacted by both investment specific and broader financial market conditions and may not produce the expected liquidity and cash flows these investments are designed to achieve, or the timing thereof may also be impacted by those factors.

At September 30, 2022 and December 31, 2021, unrestricted cash and cash equivalents and unrestricted fixed maturity investments were $72.0 million and $81.1 million, respectively. The decrease of $9.1 million in unrestricted cash and fixed maturity investments during 2022 was primarily the result of:

• $10.0 million utilized for the 2021 Preference Share Repurchase Program,

• $40.0 million utilized for net purchases of other investments and equity securities, and

• $14.3 million for interest payments on the Senior Notes, partly offset by:

• $45.0 million of collateral released by AmTrust, and

•$5.8 million for net proceeds from equity method investments.

Please see the related discussion on investing and financing cash flows below. The table below summarizes our operating, investing and financing cash flows for the nine months ended September 30, ~~2017~~2022 and ~~2016:~~2021:


For the Nine Months Ended September 30,	2017			2016			For the Nine Months Ended September 30,	2022		2021
	($ in thousands)							($ in thousands)
Operating activities	$	374,779		$	326,157		Operating activities	$	(99,833)	$	(299,750)
Investing activities	(212,053		)	(291,389		)	Investing activities	119,379		344,206
Financing activities	(28,440		)	(59,665		)	Financing activities	(10,983)		(128,988)
Effect of exchange rate changes on foreign currency cash	2,644			2,715			Effect of exchange rate changes on foreign currency cash	(2,152)		(333)
Total increase (decrease) in cash and cash equivalents	$	136,930		$	(22,182	)
Total increase (decrease) in cash, restricted cash and cash equivalents							Total increase (decrease) in cash, restricted cash and cash equivalents	$	6,411	$	(84,865)

Cash Flows ~~from~~used in Operating Activities

Cash flows used in operating activities for the nine months ended September 30, 2022 were $99.8 million compared to cash flows used in operating activities of $299.8 million for the nine months ended September 30, 2021, a decrease of $199.9 million from the settlement of balances due to AmTrust through reduction of funds held receivable rather than cash. The operating cash flows used in operations for the nine months ended September 30, ~~2017~~2022 and 2021 were $374.8 million compared to $326.2 million for the nine months ended September 30, 2016, a 14.9% increase. In 2016, operating cash flows were reduced by the settlement of a $107.0 million commutation with AmTrust. Adjusted for the commutation, cash flows from operations for the nine months ended September 30, 2017 were $58.4 million or 13.5% lower compared to the same period in 2016. The decrease wasprimarily the result of ~~a higher combined ratio~~claims payments for the runoff of existing reserves for terminated AmTrust Quota Share and ~~largely unchanged gross premiums written in 2017 compared to 2016.~~

~~Reserves for loss and LAE during~~ the ~~nine months ended September 30, 2017 also increased by $168.7 million following the adverse development recognized on both our operating segments~~European Hospital Liability Quota Share contracts as well as ~~our run–off business and the current year estimated losses from Hurricanes Harvey and Irma.~~return of premiums due to AmTrust Cession Adjustments.

Cash Flows ~~from~~provided by Investing Activities

Cash flows from investing activities consist primarily of proceeds from the sales and maturities of investments and payments for investments acquired. Net cash ~~used in~~provided by investing activities was ~~$212.1~~$119.4 million for the nine months ended September 30, ~~2017~~2022 compared to ~~$291.4~~$344.2 million for the same period in ~~2016. The Company continues~~2021 due to ~~deploy available cash for longer-term~~proceeds from the sale of fixed maturity investments ~~as investment conditions permit and~~which were made primarily to ~~maintain, where possible, cash and cash equivalents balances at low levels. Our total cash balance as at~~settle claim payments during the nine months ended September 30, ~~2017 includes~~2022 and 2021 as well as repurchase preference shares during the ~~pending settlement of investments purchased of $21.7 million which settled in October.~~ nine months ended September 30, 2022 and 2021.

For the nine months ended September 30, ~~2017, the purchases of fixed maturity securities exceeded~~2022, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by ~~$192.8 million. Adding~~$153.6 million compared to net proceeds of $418.5 million for fixed maturity securities in the ~~outflow~~same period in 2021. There was ~~the increase in restricted cash and cash equivalents~~also net proceeds of ~~$27.0~~equity method investments of $5.8 million partly offset by $40.0 million utilized for net purchases of other investments and equity securities during the ~~net proceeds from other investing activities of $7.8 million.~~nine months ended September 30, 2022.

Cash Flows ~~from~~used in Financing Activities

Cash flows used in financing activities were ~~$28.4~~$11.0 million for the nine months ended September 30, ~~2017~~2022 compared to ~~$59.7~~$129.0 million ~~for~~during the ~~same period~~nine months ended in ~~2016. The decrease in net cash outflow for~~2021 due to the repurchase of the Company's preference shares. During the nine months ended September 30, ~~2017~~2022, the Company paid $10.0 million for the repurchase of 1,581,509 preference shares pursuant to the 2021 Preference Share Repurchase Program compared to 9,075,673 preference shares repurchased by the Company during the same period in ~~2016 was due to the issuance~~2021 for an aggregate total consideration of ~~new~~$132.2 million.

No dividends on common or preference shares ~~with net proceeds~~were paid during the nine months ended September 30, 2022 and 2021. Our Board of ~~$144.9 million, which was partially used to redeem the 2012 senior notes issuance of $100.0 million. The net proceeds from the~~Directors have not declared any common or preference share issue were offset by the repurchase of common shares of $14.9 million during the current period in 2017 bulk of which was made under the Company's authorized share repurchase program. In addition, there was a decrease in dividends ~~paid on preference shares of $7.1 million due to the mandatory conversion of Preference Shares Series B to Maiden's common shares during~~since the third quarter of ~~2016, offset by the increase in dividends paid to common shareholders of $7.9 million due to an increased number of common shares outstanding as well as higher dividend rate in 2017.~~

2018.

Restrictions, Collateral and Specific Requirements

The Company's restrictions, collateral and specific requirements are discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2021, that was filed with the SEC on March ~~6, 2017.~~14, 2022.

At September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, restricted cash and cash equivalents and fixed maturity investments used as collateral were ~~$4.86 billion~~$372.5 million and ~~$4.40 billion,~~$582.1 million, respectively. This collateral represents ~~90.8%~~83.8% and ~~90.0%~~87.8% of the fair value of ~~our~~ total fixed maturity investments, ~~and~~ cash, ~~and cash equivalents (including~~ restricted cash and ~~cash equivalents)~~equivalents at September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, respectively. ~~The $462.0 million increase was primarily attributable to the increase in assets provided as collateral for the AmTrust Reinsurance segment reflecting continued growth in both premiums~~

Cash and ~~reserves.~~

Investments

The investment of our funds ishas generally been designed to ensure safety of principal while generating current income. Accordingly, the majority of our funds ~~are~~have been invested in liquid, investment-grade fixed income securities which are all designated as ~~either available-for-sale ("AFS") or held-to-maturity ("HTM").~~ AFS at September 30, 2022. As of September 30, 2022 and December 31, 2021, our cash and investments consisted of:


	September 30, 2022		December 31, 2021
	($ in thousands)
Fixed maturities, available-for-sale, at fair value	$	371,973	$	597,145
Equity securities, at fair value	42,600		24,003
Equity method investments	80,165		83,742
Other investments	140,804		117,722
Total investments	635,542		822,612
Cash and cash equivalents	24,376		26,668
Restricted cash and cash equivalents	48,122		39,419
Total Investments and Cash and Cash Equivalents	$	708,040	$	888,699

In ~~2017~~addition to the discussion on Cash and ~~2016,~~Cash Equivalents and Fixed Maturities that follows herein, please see the ~~Company designated certain corporate and municipal bonds previously classified as AFS to HTM to reflect our intention of holding these bonds until maturity. See~~ "Notes to Condensed Consolidated Financial Statements (unaudited) Note 4. Investments" included under Part I Item 1 "Financial Information" of this Form 10-Q for further discussion on our AFS fixed income securities.

As our insurance liabilities continue to run-off and the required capital to operate our business for regulatory purposes decreases, we have modified Maiden Reinsurance’s investment policy (which has been approved by the Vermont DFR as noted) and have expanded the range of asset classes we invest in to enhance the income and total returns our investment portfolio produces. We categorize these investments as alternative investments which include "Other Investments", "Equity Securities", and "Equity Method Investments" as captioned on our condensed consolidated balance sheets.

Under this revised investment policy, we increased the amount of alternative investments during 2022 and 2021, and we expect to continue to increase the amounts invested therein. Under our investment policy, alternative investments could include, but are not limited to, privately held investments, private equities, private credit lending funds, fixed-income funds, hedge funds, equity funds, real estate (including joint ventures and limited partnerships) and other non-fixed-income investments.

For further details on our alternative investments, in addition to the discussion of the investments herein, please see "Notes to Condensed Consolidated Financial Statements (unaudited) Note 4(b). Other Investments, Equity Securities and Equity Method Investments" included under Part I Item 1 "Financial Information" of this Form 10-Q.

~~During the nine months ended September 30, 2017, the yield on the 10-year U.S. Treasury bond decreased by 12 basis points~~Our investment performance is subject to ~~2.33%. The 10-year U.S. Treasury is the key risk-free determinant~~a variety of risks, including risks related to general economic conditions, market volatility, interest rate fluctuations, foreign exchange risk, liquidity risk and credit and default risk. Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond our control. An increase in interest rates could result in significant losses, realized or unrealized, in the ~~fair~~ value of ~~many~~our investment portfolio. A portion of our portfolio consists of alternative investments that subject us to restrictions on redemption, which may limit our ability to withdraw funds for some period of time after the initial investment. The values of, and returns on, such investments may also be more volatile.

We believe our other investments, equity securities and equity method investments portfolio provides diversification against our fixed-income investments and an opportunity for improved risk-adjusted return, however, the returns of these investments may be more volatile and we may experience significant unrealized gains or losses in any particular quarter or year. While we believe the returns produced by these investments will exceed our ~~AFS portfolio.~~ cost of capital, in particular our cost of debt capital, it is too soon to determine if the actual returns will achieve this objective and it may be an extended period of time before that determination can be made.

We may utilize and pay fees to various companies to provide investment advisory and/or management services related to these investments. These fees, which would be predominantly based upon the amount of assets under management, would be included in net investment income. In addition, costs associated with evaluating, analyzing and monitoring these investments may require additional expenditures than traditional marketable securities. During 2022, our investment expenses associated with our alternative investments have decreased compared to 2021.

The ~~decrease in interest rates~~substantial majority of our current and future investments are held by Maiden Reinsurance, whose investment policy was approved by the Vermont DFR. We may utilize a portion of Maiden Reinsurance's unrestricted assets to purchase affiliated securities and, during the nine months ended September 30, ~~2017 reflects some uncertainty~~2022, we utilized $10.0 million in ~~U.S. fiscal policy despite generally improving economic conditions in both~~conjunction with the ~~U.S and internationally. Relaxation~~2021 Preference Share Repurchase Program. As of ~~stringent monetary policy as has been experienced in recent years continues to emerge but at a gradual pace.~~

~~The movement~~September 30, 2022, Maiden Reinsurance cumulatively invested $175.8 million in the ~~market values~~preference shares of our AFS fixed maturity portfolio was a net gain of $73.6 million primarily due to foreign exchange gains of $52.5 million arising on our euro-denominated investment portfolio following the strengthening of the euro versus the U.S. dollar during the nine months ended September 30, 2017. See "~~Liquidity and Capital Resources - Capital Resources"~~ ~~on page 63 for further information.~~Maiden Holdings.

Cash & Cash Equivalents

At September 30, ~~2017,~~2022, we consider the levels of cash and cash equivalents ~~we are holding~~held to be within our targeted ranges. At September 30, 2017 there was approximately $21.7 million in liability for investments purchased on the Company's Consolidated Balance Sheet compared to $6.4 million as at December 31, 2016, which was subsequently settled in cash after the quarter end. However, duringDuring periods when interest rates experience greater volatility, we have periodically maintained more cash and cash equivalents ~~in order~~ to better assess current market conditions and opportunities within our defined risk appetite, and may do so in future periods.

~~In order~~

Fixed Maturity Investments

The average yield and average duration of our fixed maturities, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at September 30, 2022 and December 31, 2021, respectively:


September 30, 2022	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Average yield(1)		Average duration(2)
	($ in thousands)
U.S. treasury bonds	$	58,464	$	—	$	(241)	$	58,223	0.5	%	0.2
U.S. agency bonds – mortgage-backed	73,874		—		(7,682)		66,192		2.9	%	4.4
Collateralized mortgage-backed securities	7,199		—		(397)		6,802		4.2	%	3.1
Non-U.S. government bonds	12,586		—		(1,605)		10,981		0.3	%	3.1
Collateralized loan obligations	175,047		—		(30,514)		144,533		2.3	%	0.3
Corporate bonds	105,144		—		(19,902)		85,242		1.5	%	2.4

Total fixed maturities	432,314		—		(60,341)		371,973		1.9	%	1.6
Cash and cash equivalents	72,498		—		—		72,498		0.6	%	0.0
Total	$	504,812	$	—	$	(60,341)	$	444,471	1.7	%	1.4


December 31, 2021	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Average yield(1)		Average duration(2)
	($ in thousands)
U.S. treasury bonds	$	59,989	$	—	$	(110)	$	59,879	0.2	%	0.9
U.S. agency bonds – mortgage-backed	96,554		2,429		(193)		98,790		2.7	%	2.1
Collateralized mortgage-backed securities	14,972		565		—		15,537		3.2	%	3.1
Non-U.S. government bonds	3,163		113		—		3,276		0.3	%	7.3
Collateralized loan obligations	183,974		140		(5,093)		179,021		1.3	%	0.3
Corporate bonds	236,692		10,094		(6,144)		240,642		2.5	%	2.7

Total fixed maturities	595,344		13,341		(11,540)		597,145		1.9	%	1.7
Cash and cash equivalents	66,087		—		—		66,087		—	%	0.0
Total	$	661,431	$	13,341	$	(11,540)	$	663,232	1.7	%	1.5

(1) Average yield is calculated by dividing annualized investment income for each sub-component of fixed maturity securities and cash and cash equivalents (including amortization of premium or discount) by amortized cost.

(2) Average duration in years.

During the nine months ended September 30, 2022, the yield on the 10-year U.S. Treasury bond increased by 231 basis points to 3.83%. The 10-year U.S. Treasury rate is the key risk-free determinant in the fair value of many of the fixed maturity securities in our portfolio. The U.S. Treasury yield curve experienced a material upward shift during the nine months ended September 30, 2022, reflecting concerns of the U.S. Federal Reserve about ongoing inflation emanating from the combination of: 1) the strength of the U.S. economy as the economic effects of the COVID-19 pandemic continue to abate; 2) geopolitical instability in Eastern Europe which threatened additional inflation and global economic stability; 3) the levels of fiscal stimulus administered by the U.S. federal government to support the economy; and 4) the anticipated monetary policy responses required to temper these factors. Central banks globally have responded in similar fashion and continue to suggest additional interest rate increases may occur.

The movement in the market values of our fixed maturity portfolio during the nine months ended September 30, 2022 generated net unrealized losses of $62.1 million which reduced our book value per common share by $0.71 during that period. Current outlooks for global monetary policy indicate that substantial quantitative tightening by central banks in the U.S. and globally appears likely to continue for at least the near term. Our investment portfolios, in particular our fixed maturity portfolio, may be adversely impacted by unfavorable market conditions caused by these measures, which could cause continued volatility in our results of operations and negatively impact our financial condition.

Interest rate risk is the price sensitivity of a security to changes in interest rates. Credit spread risk is the price sensitivity of a security to changes in credit spreads. As noted, the fair value of our fixed maturity investments will fluctuate with changes in interest rates and credit spreads. We attempt to maintain adequate liquidity in our fixed maturity investments portfolio with a strategy designed to emphasize the preservation of our invested assets and provide sufficient liquidity for the prompt payment of claims and contract liabilities. Because we collateralize a significant portion of our insurance liabilities, unanticipated or large increases in interest rates could require us to utilize significant amounts of unrestricted cash and fixed maturity securities to provide additional collateral, which could impact our asset and capital management strategy described herein.

We also monitor the duration and structure of our investment portfolio as discussed below. As of September 30, 2022, the aggregate hypothetical change in fair value from an immediate 100 basis points increase in interest rates, assuming credit

spreads remain constant, in our fixed maturity investments portfolio would decrease the fair value of that portfolio by $11.8 million. Actual shifts in interest rates may not change by the same magnitude across the maturity spectrum or on an individual security and, as a result, the impact on the fair value of our fixed maturity securities may be materially different from the resulting change in value described above.

To limit our exposure to unexpected interest rate increases which would reduce the value of our fixed income securities and reduce our shareholders' equity, we attempt to maintain the duration of our fixed maturity investment portfolio combined with our cash and cash equivalents, both restricted and unrestricted, within a reasonable range of the duration of our loss reserves.

At September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, these respective durations in years were as follows:


	September 30, 2022	December 31, 2021
Fixed maturities and cash and cash equivalents	1.4	1.5
Reserve for loss and LAE - gross of LPT/ADC Agreement reserves	5.1	4.4
Reserve for loss and LAE - net of LPT/ADC Agreement reserves	0.8	1.4

September 30, 2017 December 31, 2016
Fixed maturities and cash and cash equivalents 4.4 4.9
Reserve for loss and LAE 3.6 3.8

AtDuring the nine months ended September 30, ~~2017 and December 31, 2016~~2022, the weighted average duration of our fixed maturity investment portfolio decreased by ~~0.5~~0.1 year to ~~4.4~~1.4 years ~~and~~while the duration for the reserve for loss and LAE ~~decreased~~increased by 0.7 year to ~~3.6~~5.1 years. The differential in duration between these assets and liabilities may fluctuate over time and in the case of fixed maturities, ishistorically has been affected by factors such as market conditions, changes in asset mix and prepayment speeds in the case of both our agency mortgage-backed securities ("Agency MBS") and commercial mortgage-backed ~~securities ("CMBS").~~

~~The average yield and average~~securities. At September 30, 2022, the duration of our fixed ~~maturities, by asset class, and~~maturity investment portfolio decreased compared to December 31, 2021 due to continued sales of fixed maturity investments primarily made to settle claim payments with AmTrust.

At September 30, 2022, the duration of our ~~cash and cash equivalents (restricted and unrestricted) are as follows:~~

September 30, 2017 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Average yield⁽¹⁾

Average duration⁽²⁾
AFS fixed maturities ($ in thousands)
U.S. treasury bonds $ 5,194
$ 150
$ (8 ) $ 5,336
3.0 % 1.7
U.S. agency bonds – mortgage-backed 2,004,645
14,208
(12,451 ) 2,006,402
2.8 % 4.6
Non-U.S. government and supranational bonds 33,392
216
(2,012 ) 31,596
2.7 % 3.3
Asset-backed securities 257,969
4,456
(164 ) 262,261
4.4 % 2.3
Corporate bonds 1,541,296
52,717
(17,624 ) 1,576,389
3.2 % 5.0
Municipal bonds 2,500
103
—
2,603
4.2 % 8.1
Total AFS fixed maturities 3,844,996
71,850
(32,259 ) 3,884,587
3.1 % 4.6
HTM fixed maturities
Corporate bonds 1,057,943
34,027
(748 ) 1,091,222
3.5 % 5.2
Municipal Bonds 60,425
459
—
60,884
3.2 % 5.0
Total HTM fixed maturities 1,118,368
34,486
(748 ) 1,152,106
3.5 % 5.1
Cash and cash equivalents 314,275
—
—
314,275
0.2 % 0.0
Total $ 5,277,639
$ 106,336
$ (33,007 ) $ 5,350,968
3.0 % 4.4

December 31, 2016 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Average yield⁽¹⁾

Average duration⁽²⁾
AFS fixed maturities ($ in thousands)
U.S. treasury bonds $ 5,186
$ 238
$ (11 ) $ 5,413
3.0 % 2.4
U.S. agency bonds – mortgage-backed 1,720,436
12,867
(17,265 ) 1,716,038
2.8 % 4.9
U.S. agency bonds – other 18,082
20
—
18,102
3.2 % 8.9
Non-U.S. government and supranational bonds 35,158
73
(5,297 ) 29,934
2.4 % 3.4
Asset-backed securities 217,232
3,713
(69 ) 220,876
4.6 % 2.5
Corporate bonds 1,947,347
30,951
(62,093 ) 1,916,205
3.5 % 5.4
Municipal bonds 62,201
2,897
—
65,098
4.2 % 6.5
Total AFS fixed maturities 4,005,642
50,759
(84,735 ) 3,971,666
3.2 % 5.1
HTM fixed maturities
Corporate bonds 752,212
16,370
(2,447 ) 766,135
3.6 % 5.2
Total HTM fixed maturities 752,212
16,370
(2,447 ) 766,135

Cash and cash equivalents 149,535
—
—
149,535
0.1 % 0.0
Total $ 4,907,389
$ 67,129
$ (87,182 ) $ 4,887,336
3.2 % 4.9


~~(1)~~	~~Average yield is calculated by dividing annualized investment income for each sub-component~~loss reserves net of ~~AFS and HTM securities and cash and cash equivalents (including amortization of premium or discount) by amortized cost.~~


~~(2)~~	~~Average duration in years.~~

~~The following table summarizes~~ the ~~Company's~~LPT/ADC Agreement was lower than the duration of our fixed maturity investment portfolio ~~holdings~~driven by ~~contractual~~the commutation of certain European Hospital Liability policies which were long-tailed in nature and were not subject to the LPT/ADC Agreement.

To limit our exposure to unexpected interest rate increases that could reduce the value of our fixed maturity securities and reduce our shareholders' equity, the Company holds floating rate securities whose fair values are less sensitive to interest rates. At September 30, 2022 and December 31, 2021, 28.2% and 23.6%, respectively, of our fixed income investments are comprised of floating rate securities. The floating rate investment holdings at September 30, ~~2017~~2022 and December 31, ~~2016:~~2021 were as follows:


	September 30, 2022				December 31, 2021
($ in thousands)	Fair Value		% of Total		Fair Value		% of Total
Floating rate securities
Collateralized loan obligations	$	144,533	12.8	%	$	174,873	11.9	%
Collateralized mortgage-backed securities	4,794		0.4	%	3,007		0.2	%
Corporate bonds	977		0.1	%	1,145		0.1	%
Total floating rate AFS fixed maturities at fair value	150,304		13.3	%	179,025		12.2	%
Loan to related party	167,975		14.9	%	167,975		11.4	%
Total floating rate securities	$	318,279	28.2	%	$	347,000	23.6	%

Total fixed income investments at fair value (1)	$	1,129,035			$	1,467,619

September 30, 2017 December 31, 2016
($ in thousands) AFS fixed maturities HTM fixed maturities AFS fixed maturities HTM fixed maturities
Fair Value Amortized cost Fair Value Amortized Cost
Due in one year or less $ 38,784
$ 49,293
$ 61,219
$ —
Due after one year through five years 583,569
335,922
560,141
260,557
Due after five years through ten years 990,968
723,297
1,371,356
486,568
Due after ten years 2,603
9,856
42,036
5,087
1,615,924
1,118,368
2,034,752
752,212
U.S. agency bonds – mortgage-backed 2,006,402
—
1,716,038
—
Asset-backed securities 262,261
—
220,876
—
Total fixed maturities $ 3,884,587
$ 1,118,368
$ 3,971,666
$ 752,212
(1) Total fixed income investments at fair value include AFS fixed maturities, cash and restricted cash, funds withheld receivable, and loan to related party.

~~Substantially all~~At September 30, 2022 and December 31, 2021, 100.0% of the Company’s U.S. agency bond holdings are mortgage-backed. Additional details on the Agency MBS holdings at September 30, ~~2017~~2022 and December 31, ~~2016~~2021 were as follows:


	September 30, 2022				December 31, 2021
($ in thousands)	Fair Value		% of Total		Fair Value		% of Total

FNMA – fixed rate	$	32,099	48.5	%	$	47,419	48.0	%

FHLMC – fixed rate	31,337		47.3	%	47,758		48.3	%
GNMA – variable rate	2,756		4.2	%	3,613		3.7	%

Total U.S. Agency MBS	$	66,192	100.0	%	$	98,790	100.0	%

September 30, 2017 December 31, 2016
Fair Value % of Total Fair Value % of Total
U.S. agency bonds - mortgage-backed ($ in thousands) ($ in thousands)
Residential mortgage-backed (RMBS)
GNMA – fixed rate $ 357,165
17.8 % $ 368,142
21.2 %
FNMA – fixed rate 893,334
44.5 % 800,947
46.2 %
FNMA – variable rate 14,441
0.7 % 17,761
1.0 %
FHLMC – fixed rate 736,956
36.8 % 523,983
30.2 %
FHLMC – variable rate 4,506
0.2 % 5,205
0.3 %
Total U.S. agency bonds - mortgage-backed 2,006,402
100.0 % 1,716,038
98.9 %
Non-MBS fixed rate agency bonds —
— % 18,102
1.1 %
Total U.S. agency bonds $ 2,006,402
100.0 % $ 1,734,140
100.0 %

~~The following table provides a summary of changes in fair value associated with our~~Total U.S. agency ~~bonds - mortgage-backed portfolio:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2017 2016 2017 2016
Agency MBS: ($ in thousands) ($ in thousands)
Beginning balance $ 1,795,612
$ 1,451,795
$ 1,716,038
$ 1,476,991
Purchases 271,651
267,040
490,237
366,399
Sales, calls and paydowns (63,438 ) (104,146 ) (202,556 ) (261,238 )
Net realized gains on sales – included in net income 22
—
(74 ) 230
Change in net unrealized losses – included in other comprehensive income 3,751
(7,149 ) 6,155
28,156
Amortization of bond premium and discount (1,196 ) (1,762 ) (3,398 ) (4,760 )
Ending balance $ 2,006,402
$ 1,605,778
$ 2,006,402
$ 1,605,778

~~Our Agency~~ MBS ~~portfolio is 40.1%~~comprise 17.8% of our fixed maturity ~~investments~~investment portfolio at September 30, ~~2017.~~2022. Given ~~the~~their relative size ~~of this portfolio~~ to our total investments, if faster prepayment patterns were to occur over an extended period of time, this could potentially limit the growth in our investment income in certain circumstances or ~~even potentially reducing~~reduce the total amount of investment income we earn.

At September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, 98.8% and ~~96.5%~~97.8%, respectively, of our fixed maturity investments consisted of investment grade securities. We define a security as being below investment grade if it has an S&P credit rating of BB+, or equivalent, or less. ~~See~~Please see "Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 4. Investments" for additional information on the credit rating of our fixed income portfolio.

The security holdings by sector and financial strength rating of our corporate bond holdings at September 30, ~~2017~~2022 and December 31, ~~2016~~2021 were as follows:


	Ratings(1)
September 30, 2022	AAA		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
Corporate bonds									($ in thousands)
Basic Materials	—	%	5.3	%	—	%	—	%	$	4,481	5.3	%
Communications	—	%	5.6	%	5.2	%	—	%	9,195		10.8	%
Consumer	—	%	6.2	%	38.6	%	—	%	38,176		44.8	%
Energy	—	%	0.9	%	7.5	%	—	%	7,189		8.4	%
Financial Institutions	1.7	%	20.0	%	1.5	%	5.2	%	24,245		28.4	%
Industrials	—	%	2.3	%	—	%	—	%	1,956		2.3	%

Total	1.7	%	40.3	%	52.8	%	5.2	%	$	85,242	100.0	%


																Ratings(1)
	Ratings⁽¹⁾
September 30, 2017	AAA		AA+, AA, AA-		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
											($ in thousands)
December 31, 2021															December 31, 2021	AAA		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
Corporate bonds															Corporate bonds									($ in thousands)
Basic Materials	—	%	—	%	1.8	%	4.4	%	0.9	%	$	186,804	7.1	%	Basic Materials	—	%	2.4	%	1.7	%	—	%	$	9,995	4.1	%
Communications	—	%	0.5	%	1.3	%	6.0	%	—	%	209,098		7.8	%	Communications	—	%	2.4	%	3.2	%	—	%	13,480		5.6	%
Consumer	—	%	0.5	%	13.9	%	11.6	%	—	%	695,590		26.0	%	Consumer	—	%	2.4	%	31.3	%	2.8	%	87,753		36.5	%
Energy	—	%	1.0	%	3.8	%	3.0	%	0.8	%	229,598		8.6	%	Energy	—	%	9.4	%	4.8	%	—	%	34,068		14.2	%
Financial Institutions	1.4	%	3.3	%	22.8	%	12.3	%	—	%	1,059,788		39.8	%	Financial Institutions	0.6	%	18.8	%	12.9	%	2.6	%	84,025		34.9	%
Industrials	—	%	0.8	%	2.0	%	2.8	%	0.1	%	151,750		5.7	%	Industrials	—	%	1.0	%	—	%	—	%	2,393		1.0	%
Technology	—	%	1.1	%	2.6	%	0.8	%	0.5	%	134,983		5.0	%	Technology	—	%	3.7	%	—	%	—	%	8,928		3.7	%
Total Corporate bonds	1.4	%	7.2	%	48.2	%	40.9	%	2.3	%	$	2,667,611	100.0	%
Total															Total	0.6	%	40.1	%	53.9	%	5.4	%	$	240,642	100.0	%

(1) Ratings as assigned by S&P, or equivalent

Ratings⁽¹⁾

December 31, 2016 AAA AA+, AA, AA- A+, A, A- BBB+, BBB, BBB- BB+ or lower Fair Value % of Corporate bonds portfolio
($ in thousands)
Corporate bonds
Basic Materials — % — % 1.5 % 4.1 % 2.4 % $ 213,904
8.0 %
Communications — % 0.5 % 1.3 % 6.6 % — % 223,984
8.4 %
Consumer — % 0.4 % 14.9 % 8.9 % 0.3 % 657,717
24.5 %
Energy — % 1.0 % 3.8 % 2.7 % 2.1 % 256,449
9.6 %
Financial Institutions 1.4 % 2.3 % 22.1 % 12.6 % 0.2 % 1,035,759
38.6 %
Industrials — % 0.8 % 2.0 % 2.9 % 0.6 % 170,030
6.3 %
Technology — % 2.2 % 1.1 % 0.6 % 0.7 % 124,497
4.6 %
Total Corporate bonds 1.4 % 7.2 % 46.7 % 38.4 % 6.3 % $ 2,682,340
100.0 %


~~(1)~~	~~Ratings as assigned by S&P, or equivalent~~

The table below includes the Company’s ten largest corporate holdings ~~all of which are U.S. dollar denominated and 60.6% of which are in the Financial Institutions sector, at September 30, 2017 as carried~~ at fair value and as a percentage of all fixed income securities ~~were~~held as ~~follows:~~at September 30, 2022; of which 100.0% are euro denominated, with 54.6% in the Consumer Sector and 19.3% in the Financial Institutions sector.


September 30, 2022	Fair Value		% of Holdings		Rating(1)
	($ in thousands)
Anheuser-Busch INBEV NV, 2.875%, Due 9/25/2024	$	9,795	2.6	%	BBB+
Chubb Ina Holdings Inc., 1.55%, Due 3/15/2028	5,655		1.5	%	A
Kraft Heinz Foods Co., 1.5%, Due 5/24/2024	5,558		1.5	%	BBB-
Glencore Finance (Europe) LTD, 1.875%, Due 9/13/2023	4,827		1.3	%	BBB+
Santander Consumer Finance SA, 1.125%, Due 10/9/2023	4,806		1.3	%	A
Volkswagen International Finance NV, 1.125%, Due 10/2/2023	4,800		1.3	%	A-
America Movil SAB DE CV, 1.5%, Due 3/10/2024	4,789		1.3	%	A-
Utah Acquisition Sub Inc., 2.25%, Due 11/22/2024	4,712		1.3	%	BBB-
Molson Coors Beverage Co., 1.25%, Due 7/15/2024	4,674		1.2	%	BBB-
PPG Industries Inc., 0.875%, Due 11/3/2025	4,481		1.2	%	A-
Total	$	54,097	14.5	%

(1) Ratings as assigned by S&P, or equivalent

September 30, 2017 Fair Value % of Holdings
Based on Fair
Value of All
Fixed Income
Securities
Rating⁽¹⁾
($ in thousands)
Australia and New Zealand Banking Group, 3.70% Due 11/16/2025 $ 26,505
0.5 % AA-
Morgan Stanley, 4.00% Due 7/23/2025 26,383
0.5 % BBB+
Schlumberger Holdings Corporation, 4.00% Due 12/21/2025 26,269
0.5 % AA-
JP Morgan Chase & Co, 3.90% Due 7/15/2025 21,078
0.5 % A-
Vale Overseas Ltd, 4.375% Due 1/11/2022 20,890
0.4 % BBB-
Gilead Sciences Inc, 3.65% Due 3/1/2026 20,889
0.4 % A
BNP Paribas, 5.00% Due 1/15/2021 20,732
0.4 % A
Brookfield Asset Management Inc, 4.00%, Due 1/15/2025 20,590
0.4 % A-
Rabobank Nederland Utrec, 3.875% Due 2/8/2022 20,261
0.4 % A+
AT&T Inc, 2.625% Due 12/1/2022 19,997
0.4 % BBB+
Total $ 223,594
4.4 %


~~(1)~~	~~Ratings as assigned by S&P, or equivalent~~

~~We own~~At September 30, 2022 and December 31, 2021, respectively, we held the following non-U.S. dollar denominated securities:


	September 30, 2022				December 31, 2021
($ in thousands)	Fair Value		% of Total		Fair Value		% of Total
Non-U.S. dollar denominated collateralized loan obligations	$	90,514	48.9	%	$	113,399	42.9	%
Non-U.S. dollar denominated corporate bonds	83,788		45.2	%	147,740		55.9	%
Non-U.S. government bonds	10,981		5.9	%	3,275		1.2	%
Total non-U.S. dollar denominated securities	$	185,283	100.0	%	$	264,414	100.0	%

At September 30, 2022 and December 31, 2021, respectively, 100.0% of our non-U.S. dollar denominated securities ~~not denominated in U.S. dollars:~~

September 30, 2017 December 31, 2016
($ in thousands) Fair Value % of Total Fair Value % of Total
Non-U.S. dollar denominated corporate bonds $ 427,985
93.3 % $ 345,646
92.3 %
Non-U.S. government and supranational bonds 30,624
6.7 % 28,980
7.7 %
Total non-U.S. dollar denominated AFS securities $ 458,609
100.0 % $ 374,626
100.0 %

~~These securities are~~above were invested in ~~the following currencies:~~

September 30, 2017 December 31, 2016
($ in thousands) Fair Value % of Total Fair Value % of Total
Euro $ 391,865
85.4 % $ 315,768
84.3 %
British Pound 42,654
9.3 % 39,154
10.5 %
Australian Dollar 14,169
3.1 % 10,089
2.7 %
Canadian Dollar 5,272
1.2 % 3,360
0.9 %
All other 4,649
1.0 % 6,255
1.6 %
Total non-U.S. dollar denominated AFS securities $ 458,609
100.0 % $ 374,626
100.0 %

euro. The net ~~increase~~decrease in non-U.S. denominated fixed maturities is ~~primarily~~largely due to ~~purchases. We do not have any non-U.S. government and government related obligations~~the relative depreciation of ~~Greece, Ireland, Italy, Portugal and Spain at~~euro denominated corporate bonds during the nine months ended September 30, ~~2017~~2022. At September 30, 2022 and December 31, ~~2016. At September 30, 2017 and December 31, 2016, 100.0%~~2021, all of the Company's non-U.S. government ~~and supranational~~ issuers ~~were rated A+~~have a rating of AA- or higher by S&P.

For our non-U.S. dollar denominated corporate bonds, the following table summarizes the composition of the fair value of our fixed maturity investments at the dates indicated by ~~ratings:~~ratings at September 30, 2022 and December 31, 2021:


Ratings(1)	September 30, 2022				December 31, 2021
($ in thousands)	Fair Value		% of Total		Fair Value		% of Total


A+, A, A-	$	34,311	40.9	%	$	56,669	38.4	%
BBB+, BBB, BBB-	45,066		53.8	%	78,021		52.8	%
BB+ or lower	4,411		5.3	%	13,050		8.8	%
Total non-U.S. dollar denominated corporate bonds	$	83,788	100.0	%	$	147,740	100.0	%

Ratings⁽¹⁾
September 30, 2017 December 31, 2016
($ in thousands) Fair Value % of Total Fair Value % of Total
AAA $ 37,396
8.7 % $ 31,704
9.2 %
AA+, AA, AA- 58,473
13.7 % 30,535
8.8 %
A+, A, A- 198,164
46.3 % 161,845
46.8 %
BBB+, BBB, BBB- 133,952
31.3 % 114,456
33.1 %
BB+ or lower —
— % 7,106
2.1 %
Total non-U.S. dollar denominated corporate bonds $ 427,985
100.0 % $ 345,646
100.0 %
(1) Ratings as assigned by S&P, or equivalent


~~(1)~~	~~Ratings as assigned by S&P, or equivalent~~

The Company does not employ any credit default protection against any of the fixed maturities held in non-U.S. denominated ~~currencies.~~currencies at September 30, 2022 and December 31, 2021, respectively.

Other Investments, Equity Securities and Equity Method Investments

Our alternative investments are categorized as other investments, equity securities, and equity method investments as reported on our consolidated balance sheets. These include private equity funds, private credit funds and hedge fund investments, investments in limited partnerships, as well as investments in direct lending entities and investments in technology-oriented insurance related businesses known as insurtechs. Private equity investments consist of direct investments in privately held entities, investments in private equity funds and private equity co-investments with sponsoring entities. Private credit investments consist of loans and other debt securities of privately held entities or investment sponsors.

Our allocation to alternative investments increased to 37.2% of our total cash and investments as of September 30, 2022 compared to 25.4% as of December 31, 2021; and increased to 80.5% of our total shareholders' equity as of September 30, 2022 compared to 58.7% as of December 31, 2021. Our alternative investments as of September 30, 2022 and December 31, 2021 consisted of the following asset classes:


	September 30, 2022				December 31, 2021
($ in thousands)	Carrying Value		% of Total		Carrying Value		% of Total
Real estate equity method investments	$	44,925	17.0	%	$	44,050	19.6	%
Hedge fund equity method investments	15,447		5.9	%	32,929		14.6	%
Investments in direct lending entities	52,783		20.0	%	42,976		19.1	%
Private equity funds	31,777		12.1	%	23,324		10.3	%
Private credit funds	24,129		9.2	%	20,922		9.3	%
Privately held other investments	32,115		12.2	%	30,500		13.5	%
Other equity method investments	19,793		7.5	%	6,763		3.0	%
Privately held equity securities	42,002		15.9	%	22,829		10.1	%
Publicly traded equity securities	598		0.2	%	1,174		0.5	%
Total alternative investments	$	263,569	100.0	%	$	225,467	100.0	%

For further details on these alternative investments, see "Notes to Condensed Consolidated Financial Statements: Note 4(b) Other Investments, Equity Securities and Equity Method Investments" included under Part I Item 1. "Financial Information" of this Report on Form 10-Q.

Certain of the Company's investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the ownership of income-producing

properties. In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties such that it may be required to make payments now or in the future. For further details on these financial guarantees, please see "Notes to Condensed Consolidated Financial Statements: Note 11 - Commitments, Contingencies and Guarantees" included under Part I Item 1. "Financial Information" of this Report on Form 10-Q.

Investment Results

The following table summarizes our investment results for the three and nine months ended September 30, 2022 and 2021:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
($ in thousands)	2022			2021			2022			2021
Net investment income:
Fixed income assets(1)	$	6,646		$	8,042		$	19,635		$	26,074
Cash and restricted cash	154			(5)			172			11
Other investments, including equities	776			382			2,120			602
Investment expenses	(939)			(942)			(1,056)			(2,091)
Total net investment income	6,637			7,477			20,871			24,596

Net realized (losses) gains:
Fixed income assets(1)	96			1,791			1,192			5,794
Other investments, including equities	(1,822)			167			(1,345)			1,130
Total net realized (losses) gains	(1,726)			1,958			(153)			6,924

Net unrealized gains (losses):
Other investments, including equities	154			(2,895)			3,001			1,089
Total net unrealized gains (losses)	154			(2,895)			3,001			1,089

Interest in (loss) income of equity method investments:
Interest in (loss) income of equity method investments	(373)			(810)			(2,143)			4,912
Total interest in (loss) income of equity method investments	(373)			(810)			(2,143)			4,912

Total investment return included in earnings (A)	$	4,692		$	5,730		$	21,576		$	37,521

Other comprehensive loss:
Unrealized losses on AFS fixed maturities and equity method investments excluding foreign exchange (B)	$	(8,613)		$	(9,066)		$	(32,279)		$	(26,453)
Total investment return = (A) + (B)	$	(3,921)		$	(3,336)		$	(10,703)		$	11,068

Annualized income from fixed income assets and cash(2)	$	27,200		$	32,148		$	26,409		$	34,780
Average aggregate fixed income assets and cash, at cost(2)	1,264,251			1,708,297			1,327,597			1,870,686
Annualized investment book yield	2.2		%	1.9		%	2.0		%	1.9		%

Average aggregate invested assets, at fair value(3)	$1,468,428			$1,896,211			$1,542,845			$2,046,594
Investment return included in net earnings	0.3		%	0.3		%	1.4		%	1.8		%
Total investment return	(0.3)		%	(0.2)		%	(0.7)		%	0.5		%

1.Includes AFS securities as well as funds withheld receivable, and loan to related party.

2.Average aggregate fixed income assets and cash include AFS securities, cash and restricted cash, funds withheld receivable, and loan to related party and is computed as an average of the amounts disclosed in our quarterly U.S. GAAP consolidated financial statements.

3.Average aggregate invested assets include all investments (AFS and alternative investments), cash and restricted cash, loan to related party and funds withheld receivable and is computed as an average of the amounts disclosed in our quarterly U.S. GAAP consolidated financial statements.

The following table details total investment returns for our fixed income investments for the three and nine months ended September 30, 2022 and 2021, respectively:


Fixed Income Investments(1)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
($ in thousands)	2022			2021			2022			2021
Gross investment income	$	6,800		$	8,037		$	19,807		$	26,085
Net realized and unrealized gains	96			1,791			1,192			5,794
Change in AOCI (3)	(8,613)			(4,988)			(36,693)			(18,956)
Gross investment returns	$	(1,717)		$	4,840		$	(15,694)		$	12,923

Average invested assets, at fair value (4)	$	1,211,365		$	1,729,162		$	1,298,327		$	1,902,726

Gross Investment Returns	(0.1)		%	0.3		%	(1.2)		%	0.7		%

Investment expenses	$	99		$	196		$	329		$	690
Net investment returns	$	(1,816)		$	4,644		$	(16,023)		$	12,233

Net Investment Returns	(0.1)		%	0.3		%	(1.2)		%	0.6		%

The following table details total investment returns for our alternative investments for the three and nine months ended September 30, 2022 and 2021, respectively:


Alternative Investments(2)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
($ in thousands)	2022			2021			2022			2021
Gross investment income	$	403		$	(428)		$	(23)		$	5,514
Net realized and unrealized (losses) gains	(1,668)			(2,728)			1,656			2,219
Change in AOCI (3)	—			(4,078)			4,414			(7,497)
Gross investment returns	$	(1,265)		$	(7,234)		$	6,047		$	236

Average invested assets, at fair value (4)	$	257,063		$	167,048		$	244,518		$	143,868

Gross Investment Returns	(0.5)		%	(4.3)		%	2.5		%	0.2		%

Investment expenses	$	840		$	746		$	727		$	1,401
Net investment returns	$	(2,105)		$	(7,980)		$	5,320		$	(1,165)

Net Investment Returns	(0.8)		%	(4.8)		%	2.2		%	(0.8)		%

1.Fixed income investments includes AFS securities as well as cash, restricted cash, funds withheld receivable, and loan to related party.

2.Alternative investments includes other investments, equity securities, and equity method investments.

3.Change in accumulated other comprehensive income ("AOCI") excludes unrealized foreign exchange gains and losses.

4.Average invested assets is the average of the amounts disclosed in our quarterly U.S. GAAP consolidated financial statements.

Total returns on fixed income investments were adversely impacted by the increase in interest rates during the nine months ended September 30, 2022 compared to same period in 2021. Total returns on alternative investments were positive for the nine months ended September 30, 2022 partly due to the sale of an equity method investment which produced gross returns of $5.8 million which contributed 2.4% to the gross investment returns during the current period. On a percentage basis however, the investment returns on alternative investments during the nine months ended September 30, 2022 were higher compared to 2021 due to higher average invested alternative assets in 2022. For the nine months ended September 30, 2021, gross investment returns included unrealized gains of $0.9 million from an investment in an insurtech start-up company that was acquired by a special purpose acquisition company which contributed 0.6% to the gross investment returns for the prior year period.

Other Balance Sheet Changes

The following table summarizes our other material balance sheet changes ~~of the Company~~ at September 30, ~~2017~~2022 and December 31, ~~2016:~~2021:


($ in thousands)	September 30, 2017		December 31, 2016		Change		Change %		($ in thousands)	September 30, 2022		December 31, 2021		Change		Change %
Reinsurance balances receivable, net	$	479,472	$	410,166	$	69,306	16.9	%	Reinsurance balances receivable, net	$	12,368	$	19,507	$	(7,139)	(36.6)	%
Reinsurance recoverable on unpaid losses									Reinsurance recoverable on unpaid losses	547,975		562,845		(14,870)		(2.6)	%
Deferred commission and other acquisition expenses									Deferred commission and other acquisition expenses	27,295		36,703		(9,408)		(25.6)	%
Funds withheld receivable									Funds withheld receivable	516,589		636,412		(119,823)		(18.8)	%

Reserve for loss and LAE	3,365,011		2,896,496		468,515		16.2	%	Reserve for loss and LAE	1,146,084		1,489,373		(343,289)		(23.0)	%
Unearned premiums	1,601,069		1,475,506		125,563		8.5	%	Unearned premiums	73,760		100,131		(26,371)		(26.3)	%

Accrued expenses and other liabilities									Accrued expenses and other liabilities	147,591		44,542		103,049		231.4	%

The ~~reinsurance~~Company's deferred commission and other acquisition expenses decreased by 25.6% and unearned premiums decreased by 26.3% primarily due to the termination of the remaining business under both quota share contracts with AmTrust which have been in run-off since January 1, 2019. Reinsurance balances receivable ~~net,~~decreased by 36.6% with the collection of premiums receivable due from the European Hospital Liability Quota Share during the second quarter of 2022.

Funds withheld receivable decreased by 18.8% primarily due to lower funds withheld to be utilized as collateral for the AmTrust Reinsurance segment with the commutation of French Hospital Liability polices under the European Hospital Liability Quota Share during the third quarter of 2022 and settlement of reinsurance losses payable due under the AmTrust Quota Share.

Accrued expenses and other liabilities increased by 231.4% primarily due to the timing of settlement of reinsurance losses payable due to AmTrust, which have been subsequently settled; it also increased due to the derivative liability on retroactive reinsurance of $9.0 million related to GLS policies that was recognized as of September 30, 2022.

The Company's reserve for loss and LAE decreased by 23.0% primarily due to the settlement of prior year loss claims as well as favorable loss development recognized for AmTrust Reinsurance contracts. The favorable loss development on reserves covered by the LPT/ADC Agreement impacted the reinsurance recoverable on unpaid losses which decreased by $14.9 million or 2.6% as at September 30, 2022 compared to December 31, 2021.

Capital Resources

During the nine months ended September 30, 2022, book value per common share decreased by 8.5% to $2.38 and ~~unearned premiums increased~~diluted book value per common share decreased by 8.5% to $2.37, compared to December 31, 2021. This was largely due to a net decrease in AOCI of $39.3 million partly offset by net income available to Maiden common shareholders of $19.2 million during the nine months ended September 30, 2017 versus December 31, 2016. The higher amount of reinsurance balances receivable, net as at September 30, 2017 was due to higher premiums written in the Diversified Reinsurance segment during 2017 and the balance relates to timing of premium settlement. The gross premiums written during the nine months ended September 30, 2017 was largely unchanged compared to the same period in 2016. The reserve for loss and LAE increased due to adverse development recognized during 2017 from both our operating segments as well as from our run-off business and the current year estimated losses from Hurricanes Harvey and Irma of $20.0 million. The higher unearned premium as at September 30, 2017 compared to prior year end was due to the earning pattern of premiums written.

~~Capital Resources~~2022.

Capital resources consist of funds deployed ~~or available to be deployed~~ in support of our operations. Our total capital resources decreased by $39.8 million, or 2.3%, at September 30, 2017 compared at December 31, 2016. The Company’s management believes its current sources of liquidity are adequate to meet its cash requirements for the next 12 months.

The following table shows the movement in total capital resources at September 30, ~~2017~~2022 and December 31, ~~2016:~~2021:


($ in thousands)	September 30, 2022		December 31, 2021		Change		Change %
Preference shares	$	119,672	$	159,210	$	(39,538)	(24.8)	%
Common shareholders' equity	207,721		225,047		(17,326)		(7.7)	%
Total shareholders' equity	327,393		384,257		(56,864)		(14.8)	%
Senior Notes - principal amount	262,500		262,500		—		—	%
Total capital resources	$	589,893	$	646,757	$	(56,864)	(8.8)	%

($ in thousands) September 30, 2017 December 31, 2016 Change Change %
Preference shares $ 465,000
$ 315,000
$ 150,000
47.6 %
Common shareholders' equity 956,027
1,045,797
(89,770 ) (8.6 )%
Total Maiden shareholders' equity 1,421,027
1,360,797
60,230
4.4 %
Senior Notes - principal amount 262,500
362,500
(100,000 ) (27.6 )%
Total capital resources $ 1,683,527
$ 1,723,297
$ (39,770 ) (2.3 )%

~~The major factors contributing to the net decrease in~~Total capital resources ~~were as follows:~~

~~Maiden shareholders' equity~~

~~Total Maiden shareholders' equity~~decreased by $56.9 million, or 8.8% at September 30, ~~2017 increased by $60.2 million, or 4.4%,~~2022 compared to December 31, ~~2016 primarily due to:~~

~~issuance of new preference shares with net proceeds of $144.9 million after issuance cost of $5.1 million;~~

net increase in AOCI of $31.1 million. This increase arose due to: 1) an increase in AOCI of $69.9 million which arose from the net increase in our U.S. dollar denominated investment portfolio of $17.4 million relating to market price movements and an increase in our non-U.S. dollar denominated investment portfolio of $52.5 million,2021 primarily due to the ~~strengthening of the euro and British pound relative to the U.S. dollar during 2017; and offset by 2)~~ decrease in ~~cumulative translation adjustments~~total shareholders' equity as follows:

•net decrease of ~~$38.8~~$10.0 million ~~due to~~from the ~~effect~~2021 Preference Share Repurchase Program composed of ~~the appreciation~~declines in preference share capital of ~~the euro and British pound relative to the original currencies~~$39.5 million partly offset by: (1) a gain on ~~our non-U.S. dollar net liabilities (excluding non-U.S. dollar denominated AFS fixed maturities); and~~

~~net increase resulting from share based transactions~~repurchase of ~~$3.3 million.~~

~~These increases were offset by:~~

~~net loss attributable to Maiden~~preference shares of ~~$44.9 million. See "Results of Operations~~ - ~~Net Income" on page 45 for a discussion of the Company’s net loss~~$28.2 million for the nine months ended September 30, ~~2017;~~

~~dividends declared~~2022 which increased retained earnings; and (2) a net increase in additional paid-in capital of ~~$59.3~~$1.3 million ~~related~~relating to ~~the Company’s common and preferred shares; and~~

proportionate share in issuance costs of preference shares repurchased, which was previously recognized as a reduction in additional paid-in capital;

•net decrease in AOCI of ~~$14.9~~$39.3 million which arose due to: (1) net unrealized losses on investment of $57.4 million based on the decrease in the fair value of $62.1 million for our fixed income investment portfolio relating to market price movements due to rising interest rates during the nine months ended September 30, 2022, offset by $4.4 million increase for equity method investments and $0.3 million increase in deferred taxes; partly offset by (2) an increase in cumulative translation adjustments of $18.1 million due to strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro during the nine months ended September 30, 2022;

•net loss attributable to Maiden of $9.0 million for the nine months ended September 30, 2022; and partly offset by:

•net increase due to share-based compensation of $1.5 million.

Please refer to "Notes to Consolidated Financial Statements Note 6. Shareholders' Equity" included under Part II Item 8. "Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for a discussion of the equity instruments issued by the Company as at December 31, 2021.

Book value and diluted book value per common share at September 30, 2022 and December 31, 2021 were as follows:


($ in thousands except share and per share data)	September 30, 2022		December 31, 2021
Ending common shareholders’ equity	$	207,721	$	225,047
Proceeds from assumed conversion of dilutive options	5		10
Numerator for diluted book value per common share calculation	$	207,726	$	225,057

Common shares outstanding	87,161,499		86,467,242
Shares issued from assumed conversion of dilutive options and restricted shares	509,963		494,926
Denominator for diluted book value per common share calculation	87,671,462		86,962,168

Book value per common share	$	2.38	$	2.60
Diluted book value per common share	2.37		2.59

Common Shares

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. During the ~~third quarter of 2017,~~nine months ended September 30, 2022, the Company ~~repurchased a total of 2,015,700~~did not repurchase any common shares ~~at an average price of $7.11 per share~~ under its share repurchase ~~authorization.~~authorization as it is precluded from repurchasing its common shares due to its failure to pay dividends on its preference shares. Until such time as dividends on preference shares are paid, the Company will not be able to repurchase or pay dividends on its common shares. At September 30, ~~2017,~~2022, the Company had a remaining authorization of $74.2 million for share repurchases.

Preference Shares

The principal purpose of the 2021 Preference Share Repurchase Program is to adjust our capital structure to reflect current operations and the amount of capital required to operate Maiden Reinsurance. The Board has not declared or paid a dividend on the preference shares since 2018 and there can be no assurance that it will declare and pay dividends on the preference shares in the future. The preference shares are perpetual and there is no fixed date on which we are required to redeem or otherwise repurchase them.

Please refer to "Notes to Consolidated Financial Statements - Note 6. Shareholders' Equity" under Part 1 Item 1 "Financial Information" of this Quarterly Report on Form 10-Q for further information on our preference shares, including a summary of repurchases made of the Company's preference shares during the three and nine months ended September 30, 2022. The Company has a remaining authorization of ~~$85.7~~$3.9 million for preference share repurchases.

On November 9, 2022, subject to the terms and conditions of the preference shares including the affirmative vote of two-thirds of our preference shareholders, we announced our plans to exchange the preference shares for our common shares. Please refer to "Notes to Condensed Consolidated Financial Statements ~~(unaudited)~~- Note ~~11. Shareholders' Equity~~14. Subsequent Events" under Item 8 " ~~included under~~Financial Statements and Supplementary Data" in Part I Item 1 1. "Financial Information"~~of this Form 10-Q~~ for ~~a discussion of the equity instruments issued by the Company at September 30, 2017 and December 31, 2016.~~further information.

Senior Notes

~~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. The 2012 Senior Notes~~There were redeemed at a redemption price equal to 100% of the principal amount of $100.0 million 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 $2.8 million (see related discussion in ~~"Note 6. Long-Term Debt"~~ ~~and~~ ~~"Note 11. Shareholders' Equity" of the Notes to Condensed Consolidated Financial Statements (unaudited)~~ ~~included under Part I Item 1 "Financial Information"~~ ~~of this Form 10-Q).~~

~~Except as discussed above, there were~~ no ~~further~~ changes in the Company’s Senior Notes at September 30, ~~2017~~2022 compared to December 31, ~~2016~~2021 and the Company did not enter into any short-term borrowing arrangements during the nine months ended September 30, ~~2017. Refer~~2022. Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 7. Long Term Debt" included ~~in the Company’s Annual Report on~~under Part I Item 1 "Financial Information" of this Form ~~10-K for the year ended December 31, 2016~~10-Q for a discussion of the Company’s Senior Notes.

~~We have,~~The ratio of Debt to Total Capital Resources at September 30, 2022 and expect to continue, to fund a portion of our capital requirements through issuances of senior securities, including secured, unsecured and convertible debt securities, or issuances of common or preference shares. For flexibility, we have a current universal shelf registration statement that allows for the public offering and sale of our debt securities, common shares, preference shares and warrants to purchase such securities. The issuance of debt or equity securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful.December 31, 2021 was computed as follows:


($ in thousands)	September 30, 2022			December 31, 2021
Senior notes - principal amount	$	262,500		$	262,500
Maiden shareholders’ equity	327,393			384,257
Total capital resources	$	589,893		$	646,757
Ratio of debt to total capital resources	44.5		%	40.6		%

~~Financial Strength Ratings~~

Our principal operating subsidiaries' ratings were affirmed as "BBB+" (Good) on June 6, 2017 and the outlook was changed from stable to negative by Standard & Poor's ("S&P"). The rating is the eighth highest of twenty-two rating levels. The Company's principal operating subsidiaries are rated A (Excellent) with a stable outlook by A.M. Best Company ("A.M. Best") and has remained unchanged throughout the reporting period. The rating of A (Excellent) is the third highest of sixteen rating levels, as previously disclosed in the "~~Financial Strength Ratings~~"

Off-Balance Sheet Arrangements

Certain of the Company's ~~Annual Report~~investments in limited partnerships are related to real estate joint ventures with interests in multi-property projects with varying strategies ranging from the development of properties to the ownership of income-producing properties. In certain of these joint ventures, the Company has provided certain indemnities, guarantees and commitments to certain parties such that it may be required to make payments now or in the future as further described in the "Notes to Condensed Consolidated Financial Statements (unaudited) Note 11. Commitments, Contingencies and Guarantees" included under Part I Item 1 "Financial Information" of this Form 10-Q.

Any loss for which the Company could be liable would be contingent on ~~Form 10-K~~the default of a loan by the real estate joint venture entity for which the ~~year ended December 31, 2016.~~

~~Aggregate Contractual Obligations~~

InCompany provided a financial guarantee to a lender. While the ~~normal course~~Company has committed to aggregate limits as to the amount of guarantees it will provide as part of its ~~business,~~limited partnerships, guarantees are only provided on an individual transaction basis and are subject to the terms and conditions of each transaction mutually agreed by the parties involved. The Company is ~~a party~~not bound to a variety of contractual obligations as summarized in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. These contractual obligations are considered by the Company when assessingsuch guarantees without its ~~liquidity requirements and the Company is confident in its ability to meet all of its obligations. Except as previously noted in the Senior Notes section~~express authorization.

As discussed above, at September 30, ~~2017, there~~2022, guarantees of $41.3 million have been provided to lenders by the Company on behalf of the real estate joint venture, however, the likelihood of the Company incurring any losses pertaining to project level financing guarantees was determined to be remote. Therefore, no liability has been accrued under ASC 450-20.

Non-GAAP Measures

As defined and described in the Key Financial Measures section, management uses certain key financial measures, some of which are ~~no further material changes~~non-GAAP measures, to evaluate the Company's 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, explain the Company’s results to investors in a manner that allows for a more complete understanding of the underlying trends in the Company’s ~~contractual obligations~~business. The calculation, reconciliation to nearest GAAP measure and discussion of relevant non-GAAP measures used by management are as ~~disclosed~~follows:

Non-GAAPoperating loss was $21.1 million for the three months ended September 30, 2022 compared to a non-GAAP operating loss of $3.1 million for the same period in 2021. The reduction in the ~~Company’s table~~Company's non-GAAP operating results was largely due to a non-GAAP underwriting loss of ~~contractual obligations included~~$18.9 million for the three months ended September 30, 2022, compared to a non-GAAP underwriting loss of $7.3 million partly offset by gains of $6.0 million for preference share repurchases for the same respective period in 2021.

Non-GAAPoperating loss was $11.4 million for the nine months ended September 30, 2022, compared to non-GAAP operating earnings of $58.1 million in 2021. The reduction in the ~~Company’s Annual Report on Form 10-K~~Company's non-GAAP operating results was largely due to a non-GAAP underwriting loss of $30.1 million for the nine months ended September 30, 2022, compared to a non-GAAP underwriting loss of $17.9 million for the same respective period in 2021. Underwriting performance was offset by gains of $28.2 million from the repurchase of preference shares at market values for the nine months ended September 30, 2022 compared to gains of $87.2 million for preference share repurchases during the same period in 2021.

Non-GAAP operating loss and Non-GAAP diluted operating loss per share attributable to common shareholders

Non-GAAP operating loss and Non-GAAPdiluted operating loss per share attributable to common shareholders can be reconciled to the nearest U.S. GAAP financial measure as follows:


For the Three Months Ended September 30,	2022		2021
	($ in thousands except per share data)
Net (loss) income available to Maiden common shareholders	$	(8,160)	$	2,864
Add (subtract):
Net realized and unrealized investment losses	1,572		937

Foreign exchange and other gains	(8,586)		(4,116)
Interest in loss of equity method investments	373		810
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement	(6,259)		(3,609)



Non-GAAP operating loss	$	(21,060)	$	(3,114)

Diluted (loss) earnings per share attributable to common shareholders	$	(0.09)	$	0.03
Add (subtract):
Net realized and unrealized investment losses	0.02		0.01

Foreign exchange and other gains	(0.10)		(0.05)
Interest in loss of equity method investments	—		0.01
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement	(0.07)		(0.04)



Non-GAAP diluted operating loss per share attributable to common shareholders	$	(0.24)	$	(0.04)

For the Nine Months Ended September 30,	2022		2021
	($ in thousands except per share data)
Net income available to Maiden common shareholders	$	19,186	$	101,426
Add (subtract):
Net realized and unrealized investment gains	(2,848)		(8,013)

Foreign exchange and other gains	(19,121)		(6,070)
Interest in loss (income) of equity method investments	2,143		(4,912)
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement	(10,722)		(24,296)


Non-GAAP operating (loss) earnings	$	(11,362)	$	58,135

Diluted earnings per share attributable to common shareholders	$	0.22	$	1.17
Add (subtract):
Net realized and unrealized investment gains	(0.03)		(0.09)

Foreign exchange and other gains	(0.22)		(0.07)
Interest in loss (income) of equity method investments	0.02		(0.06)
Decrease in deferred gain on retroactive reinsurance under the LPT/ADC Agreement	(0.12)		(0.28)


Non-GAAP diluted operating (loss) earnings per share available to common shareholders	$	(0.13)	$	0.67

Non-GAAP Operating ROACE

Non-GAAP Operating ROACE for the three and nine months ended September 30, 2022 and 2021 was as follows:


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
($ in thousands)	2022			2021			2022			2021
Non-GAAP operating (loss) earnings	$	(21,060)		$	(3,114)		$	(11,362)		$	58,135
Opening adjusted common shareholders’ equity	269,658			277,082			274,990			208,447
Ending adjusted common shareholders’ equity	242,859			273,565			242,859			273,565
Average adjusted common shareholders’ equity	256,259			275,324			258,925			241,006
Non-GAAP Operating ROACE	(32.6)		%	(4.5)		%	(5.9)		%	32.3		%

Non-GAAP Underwriting Results

The non-GAAP underwriting results for the three and nine months ended September 30, 2022 and 2021 are as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Gross premiums written	$	5,380	$	6,821	$	(1,451)	$	7,865
Net premiums written	$	5,222	$	6,953	$	(1,915)	$	7,518
Net premiums earned	$	12,251	$	15,030	$	23,816	$	40,106
Other insurance revenue	368		138		888		946
Non-GAAP net loss and LAE(1)	(23,685)		(14,123)		(32,739)		(31,842)
Commission and other acquisition expenses	(5,398)		(6,313)		(12,811)		(19,154)
General and administrative expenses	(2,422)		(1,990)		(9,288)		(7,975)
Non-GAAP underwriting loss (1)	$	(18,886)	$	(7,258)	$	(30,134)	$	(17,919)

(1) Non-GAAP underwriting loss and non-GAAP net loss and LAE for the three and nine months ended September 30, 2022 and 2021 are adjusted for prior year reserve development subject to the LPT/ADC Agreement. Please see "Key Financial Measures" section for the definitions of Non-GAAP underwriting loss and net loss and LAE.

The non-GAAP underwriting results include the impact of favorable prior year loss reserve development under the AmTrust Quota Share which is fully recoverable from Cavello under the LPT/ADC Agreement to show the ultimate economic benefit to the Company. As shown in the table above, adjusted for the decrease in the deferred gain under the LPT/ADC Agreement of $6.3 million and $10.7 million during the three and nine months ended September 30, 2022, respectively, the non-GAAP underwriting loss was $18.9 million and $30.1 million, respectively. This compared to a non-GAAP underwriting loss of $7.3 million and $17.9 million, respectively, when adjusted for the decrease in the deferred gain under the LPT/ADC Agreement of $3.6 million and $24.3 million during the three and nine months ended September 30, 2021, respectively.

The non-GAAP underwriting results above were due to underwriting results in the AmTrust Reinsurance segment not covered by the LPT/ADC Agreement, specifically the run-off of the AmTrust Quota Share with losses occurring after December 31, ~~2016.~~2018 (including the additional ceding commission paid under the Partial Termination Amendment) as well as claims related to the European Hospital Liability Quota Share. Underwriting income in the Diversified Reinsurance segment for the three and nine months ended September 30, 2022 decreased by $2.0 million and $0.3 million compared to the three and nine months ended September 30, 2021, respectively.

Non-GAAP Net Loss and LAE

Adjusted for the decrease in the deferred gain for the LPT/ADC Agreement, the non-GAAP net loss and LAE for the three and nine months ended September 30, 2022 increased by $6.3 million and $10.7 million, respectively (2021 - $3.6 million and $24.3 million, respectively), due to favorable loss experience for AmTrust reserves subject to the LPT/ADC Agreement which are ultimately recoverable from Cavello. This adjustment is reflected in the calculation of non-GAAP Loss and LAE below:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Net loss and LAE	$	17,426	$	10,514	$	22,017	$	7,546
Less: favorable prior year loss development subject to the LPT/ADC Agreement	(6,259)		(3,609)		(10,722)		(24,296)
Non-GAAP net loss and LAE	$	23,685	$	14,123	$	32,739	$	31,842

Adjusted Shareholders' Equity, Adjusted Total Capital Resources, Adjusted Book Value per Common Share, and Ratio of Debt to Total Adjusted Capital Resources

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at September 30, 2022 and December 31, 2021 reflect the addition of the unamortized deferred gain under the LPT/ADC Agreement to the GAAP shareholders' equity as depicted in the computations below. The deferred gain under the LPT/ADC Agreement was $35.1 million at September 30, 2022 compared to $45.9 million at December 31, 2021, and relates to loss reserves subject to that agreement that are fully recoverable from Cavello.

The decrease in the unamortized deferred gain under the LPT/ADC Agreement for the nine months ended September 30, 2022 is attributable to $10.7 million in loss and LAE recognized as favorable loss development in the Company's GAAP income statement for policies subject to the LPT/ADC Agreement. We believe the inclusion of this unamortized deferred gain under these metrics better reflects the ultimate economic benefit of the LPT/ADC Agreement, which will improve the Company's shareholders' equity over the settlement period under the terms of the agreement.

The Adjusted Shareholders' Equity, Adjusted Total Capital Resources and Adjusted Book Value per Common Share at December 31, 2021 also reflected the LP Investment Adjustment of $4.1 million, which pertained to the equity accounting related to the fair value of certain hedged liabilities in an equity method investment held by the Company wherein the ultimate realizable value of the asset supporting the hedged liabilities was not recognized at fair value until its sale during the nine months ended September 30, 2022. We believe that this adjustment recognized the future realizable value and reflected the ultimate economic benefit of this investment which was sold at a realized gain during the nine months ended September 30, 2022 and improved the Company's shareholders' equity over the hedged contract period of the investment.

Reconciliation of shareholders' equity to Adjusted shareholders' equity and Adjusted Total Capital Resources

The following table computes adjusted shareholders' equity and adjusted total capital resources by recognizing the unamortized deferred gain under the LPT/ADC Agreement at September 30, 2022 and December 31, 2021 as well as the LP Investment Adjustment for realizable value of intangible asset in a limited partnership investment at December 31, 2021:


($ in thousands)	September 30, 2022		December 31, 2021		Change		Change %
Preference shares	$	119,672	$	159,210	$	(39,538)	(24.8)	%
Common shareholders' equity	207,721		225,047		(17,326)		(7.7)	%
Total shareholders' equity	327,393		384,257		(56,864)		(14.8)	%
LP Investment Adjustment	—		4,083		(4,083)		(100.0)	%
Unamortized deferred gain on LPT/ADC Agreement	35,138		45,860		(10,722)		(23.4)	%
Adjusted shareholders' equity	362,531		434,200		(71,669)		(16.5)	%
Senior Notes - principal amount	262,500		262,500		—		—	%
Adjusted total capital resources	$	625,031	$	696,700	$	(71,669)	(10.3)	%

Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share

The adjusted book value per common share as reconciled for the recognition of the unamortized deferred gain under the LPT/ADC Agreement as well as the LP Investment Adjustment for realizable value of intangible asset in limited partnership investment at September 30, 2022 and December 31, 2021 was computed as follows:


	September 30, 2022		December 31, 2021
Book value per common share	$	2.38	$	2.60
LP Investment Adjustment	—		0.05
Unamortized deferred gain on LPT/ADC Agreement	0.41		0.53
Adjusted book value per common share	$	2.79	$	3.18

Ratio of Debt to Adjusted Total Capital Resources

Management uses this non-GAAP measure to monitor the financial leverage of the Company. This measure is calculated using the total principal amount of debt divided by the sum of adjusted total capital resources as computed in the table above. The ratio of Debt to Adjusted Total Capital Resources at September 30, 2022 and December 31, 2021 was computed as follows:


($ in thousands)	September 30, 2022			December 31, 2021
Senior notes - principal amount	$	262,500		$	262,500
Adjusted shareholders’ equity	362,531			434,200
Adjusted total capital resources	$	625,031		$	696,700

Ratio of debt to adjusted total capital resources	42.0		%	37.7		%

Currency and Foreign Exchange

We conduct business in a variety of foreign (non-U.S.) currencies, the principal exposures being the euro and the British ~~pound, the Australian dollar, the Canadian dollar and the Swedish krona.~~pound. Assets and liabilities denominated in foreign currencies are exposed to changes in currency exchange rates. Our reporting currency is the U.S. dollar, and exchange rate fluctuations relative to the U.S. dollar may materially impact our results and financial position. Our principal exposure to foreign currency risk is our obligation to settle claims in foreign currencies. In addition, in order to minimize this risk, we maintain and expect to continue to maintain a portion of our investment portfolio in investments denominated in currencies other than the U.S. dollar. We may employ various strategies (including hedging) to manage our exposure to foreign currency exchange risk. To the extent that these exposures are not fully hedged or the hedges are ineffective, our results of operations or equity may be adversely ~~effected.~~affected. At September 30, ~~2017,~~2022, no such hedges or hedging strategies were in force or had been entered into. We measure monetary assets and liabilities denominated in foreign currencies at period end exchange rates, with the resulting foreign exchange gains and losses recognized in the unaudited Condensed Consolidated Statements of Income. Revenues and expenses in foreign currencies are converted at average exchange rates during the period. The effect of the translation adjustments for foreign operations is included in AOCI.

Net foreign exchange ~~losses amounted to $3.6~~gains of $8.6 million and ~~$12.2~~$20.5 million were generated during the three and nine months ended September 30, ~~2017,~~2022, respectively, compared to net foreign exchange gains of ~~$0.7~~$4.1 million and ~~$6.5~~$6.3 million for the ~~same periods~~three and nine months ended September 30, 2021, respectively.

At September 30, 2022, net foreign exchange gains were primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in ~~2016, respectively.~~excess of foreign currency assets. Our non-USD denominated liabilities at September 30, 2022 included reserve for net loss and LAE of $281.7 million. There was no new business written in non-USD currencies during the three and nine months ended September 30, 2022. Our foreign currency asset exposures at September 30, 2022 include $185.3 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy as well as $24.9 million of equity method real estate investments denominated in Canadian dollars.

Effects of Inflation

The anticipated effects of inflation are considered explicitly in the pricing of the insured exposures, which are used as the initial estimates of reserves for loss and LAE. In addition, inflation is also implicitly accounted for in subsequent estimates of loss and LAE reserves, as the expected rate of emergence is in part predicated upon the historical levels of inflation that impact ultimate claim costs. To the extent inflation causes these costs, particularly medical treatments and litigation costs, to vary from the assumptions made in the pricing or reserving estimates, the Company will be required to change the reserve for loss and LAE with a corresponding change in its earnings in the period in which the variance is identified. The actual effects of inflation on the results of operations of the Company cannot be accurately known until claims are ultimately settled.

Off-Balance Sheet Arrangements

At September 30, ~~2017,~~2022, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

Recent Accounting Pronouncements

See "Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) Note 2. Significant Accounting Policies" for a discussion on recently issued accounting pronouncements not yet adopted.

~~Item 3. Quantitative and Qualitative Disclosures about Market Risk.~~

~~Quantitative and Qualitative Disclosures About Market Risk~~

Market risk is the risk that we will incur losses in our investments due to adverse changes in market rates and prices. Market risk is directly influenced by the volatility and liquidity in the market in which the related underlying assets are invested. We believe that we are principally exposed to three types of market risk: changes in interest rates, changes in credit quality of issuers of investment securities and reinsurers and changes in foreign exchange rates.

~~Interest Rate Risk~~

Interest rate risk is the risk that we may incur economic losses due to adverse changes in interest rates. The primary market risk to the investment portfolio is interest rate risk associated with investments in fixed maturity securities. Fluctuations in interest rates have a direct impact on the market valuation of these securities. At September 30, 2017, we had AFS fixed maturity securities with a fair value of $3.9 billion that are subject to interest rate risk.

The table below summarizes the interest rate risk associated with our fixed maturity securities by illustrating the sensitivity of the fair value and carrying value of our fixed maturity securities at September 30, 2017 to selected hypothetical changes in interest rates, and the associated impact on our shareholders’ equity. Temporary changes in the fair value of our fixed maturity securities that are held as AFS do impact the carrying value of these securities and are reported in our shareholders’ equity as a component of AOCI. The selected scenarios in the table below are not predictions of future events, but rather are intended to illustrate the effect such events may have on the fair value of our AFS fixed maturity securities and on our shareholders’ equity at September 30, 2017:

Hypothetical Change in Interest Rates Fair Value Estimated Change in Fair Value Hypothetical % (Decrease) Increase in Shareholders’ Equity
($ in thousands)
200 basis point increase $ 3,555,940
$ (328,647 ) (23.1 )%
100 basis point increase 3,714,624
(169,963 ) (12.0 )%
No change 3,884,587
—
— %
100 basis point decrease 4,068,897
184,310
13.0 %
200 basis point decrease 4,267,740
383,153
27.0 %

The interest rate sensitivity on the $168.0 million loan to related party which carries an interest rate of one month LIBOR plus 90 basis points, with an increase of 100 and 200 basis points in LIBOR would increase our earnings and cash flows by $1.7 million and $3.4 million, respectively, on an annual basis, but would not affect the carrying value of the loan.

~~Counterparty Credit Risk~~

~~The concentrations of the Company’s counterparty credit risk exposures have not changed materially compared to December 31, 2016.~~

The Company has exposure to credit risk primarily as a holder of fixed income securities. The Company controls this exposure by emphasizing investment grade credit quality in the fixed income securities it purchases. The table below summarizes the credit ratings by major rating category of the Company's fixed maturity investments at September 30, 2017 and December 31, 2016:

September 30, 2017 December 31, 2016
Ratings⁽¹⁾

AA+ or better 44.5 % 41.3 %
AA, AA-, A+, A, A- 32.2 % 33.2 %
BBB+, BBB, BBB- 22.2 % 22.0 %
BB+ or lower 1.1 % 3.5 %
100.0 % 100.0 %


~~(1)~~	~~Ratings as assigned by S&P, or equivalent~~

The Company believes this high quality concentration reduces its exposure to credit risk on fixed income investments to an acceptable level. At September 30, 2017, the Company is not exposed to any significant credit concentration risk on its investments, excluding securities issued by the U.S. government and agencies which are rated AA+ (see "~~Liquidity and Capital Resources - Investments"~~ ~~on page 58), with the largest corporate issuer and the top 10 corporate issuers accounting for only 0.5% and 4.4% of the Company’s total fixed income securities, respectively.~~

The Company is subject to the credit risk of its cedants in the event of their insolvency or their failure to honor the value of the funds held balances due to the Company for any other reason. However, the Company’s credit risk in some jurisdictions is mitigated by a mandatory right of offset of amounts payable by the Company to a cedant against amounts due to the Company. In certain other jurisdictions, the Company is able to mitigate this risk, depending on the nature of the funds held arrangements, to the extent that the Company has the contractual ability to offset any shortfall in the payment of the funds held balances with amounts owed by the Company to cedants for losses payable and other amounts contractually due. Funds held balances for which the Company receives an investment return based upon either the results of a pool of assets held by the cedant or the investment return earned by the cedant on its investment portfolio are exposed to an additional layer of credit risk.

The Company has exposure to credit risk, as it relates to its business written through brokers if any, if the Company’s brokers are unable to fulfill their contractual obligations with respect to payments to the Company. In addition, in some jurisdictions, if the broker fails to make payments to the insured under the Company’s policy, the Company might remain liable to the insured for the deficiency. The Company’s exposure to such credit risk is somewhat mitigated in certain jurisdictions by contractual terms. See "~~Business and Risk Factors"~~ in Item 1 and 1A of Part I of the Annual Report on Form 10-K filed with the SEC on March 6, 2017 for detailed information on three brokers that accounted for approximately 34.6% of the Company’s gross premiums written in our Diversified Reinsurance segment for the year ended December 31, 2016.

The Company has exposure to credit risk as it relates to its reinsurance balances receivable and reinsurance recoverable on paid and unpaid losses. We are subject to the credit risk that AII and/or AmTrust will fail to perform their obligations to pay interest on and repay principal of amounts loaned to AII pursuant to its loan agreement with Maiden Bermuda, and to reimburse Maiden Bermuda for any assets or other collateral of Maiden that AmTrust’s U.S. insurance company subsidiaries apply or retain, and income on those assets. Reinsurance balances receivable from the Company’s clients at September 30, 2017 were $479.5 million, including balances both currently due and accrued.

The Company believes that credit risk related to these balances is mitigated by several factors, including but not limited to, credit checks performed as part of the underwriting process and monitoring of aged receivable balances. In addition, as the vast majority of its reinsurance agreements permit the Company the right to offset reinsurance balances receivable from clients against losses payable to them, the Company believes that the credit risk in this area is substantially reduced. Provisions are made for amounts considered potentially uncollectible. There was no allowance for uncollectible reinsurance balances receivable at September 30, 2017.

The Company requires its reinsurers to have adequate financial strength. The Company evaluates the financial condition of its reinsurers and monitors its concentration of credit risk on an ongoing basis. Provisions are made for amounts considered potentially uncollectible. The balance of reinsurance recoverable on unpaid losses was $140.6 million at September 30, 2017 compared to $99.9 million at December 31, 2016. At September 30, 2017, $62.8 million or 44.7% of the total reinsurance recoverable is receivable from one reinsurer which has a credit rating of A+ (December 31, 2016 - $54.8 million or 54.8% and with credit rating of A+). Furthermore, at September 30, 2017, $46.1 million or 32.8% (December 31, 2016 - $23.8 million or 23.8%) of these reinsurance recoverables relate to reinsurance claims from Superstorm Sandy. The table below summarizes the A.M. Best credit ratings of the Company's reinsurance counterparties at September 30, 2017 and December 31, 2016:

September 30, 2017 December 31, 2016
A or better 98.7 % 97.2 %
B++ or worse 1.3 % 2.8 %
100.0 % 100.0 %

~~Foreign Currency Risk~~

The Company is generally able to match foreign currency denominated assets against its net reinsurance liabilities both by currency and duration to protect the Company against foreign exchange and interest rate risks. However, a natural offset does not exist for all currencies. For the nine months ended September 30, 2017 and as at September 30, 2017, 7.4% of our net premiums written and 9.8% of our reserve for loss and LAE were transacted in euro, respectively.

We may employ various strategies to manage our exposure to foreign currency exchange risk. To the extent that these exposures are not fully hedged or the hedges are ineffective, our results of operations or equity may be reduced by fluctuations in foreign currency exchange rates and could materially adversely affect our financial condition and results of operations. At September 30, 2017, no hedging instruments have been entered into. Our principal foreign currency exposure is to the euro and British pound, however, assuming all other variables remain constant and disregarding any tax effects, a strengthening (weakening) of the U.S. dollar exchange rate of 10% or 20% relative to the non-U.S. currencies held by the Company would result in a decrease (increase) in the Company's net assets of $1.2 million and $2.4 million, respectively.

Item 4. Controls and Procedures

Our management, with the participation and under the supervision of our ~~Chief~~Co-Chief Executive ~~Officer~~Officers 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~~Co-Chief Executive ~~Officer~~Officers and Chief Financial Officer, to allow for timely decisions regarding required disclosures. Our ~~Chief~~Co-Chief Executive ~~Officer~~Officers 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~~Co-Chief Executive ~~Officer~~Officers 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.~~2021.

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,~~2021, 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~~2021 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 "Part I - Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2021.

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, 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

~~Subsequent to the three months ended September 30, 2017 and through the period ended November 9, 2017, 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 directors and 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 directors and executives have previously 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.

Item 6. Exhibits.



Exhibit No.						Description
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 for the quarter ended September 30, 2022 formatted in ~~XBRL (eXtensive Business Reporting Language):~~Inline XBRL: (i) ~~the~~ unaudited Condensed Consolidated Balance ~~Sheets,~~Sheets; (ii) ~~the~~ unaudited Condensed Consolidated Statements of ~~Income,~~Income; (iii) ~~the~~ unaudited Condensed Consolidated Statements of Comprehensive ~~Income,~~Income; (iv) ~~the~~ unaudited Condensed Consolidated Statements of Changes in Shareholders' ~~Equity,~~Equity; (v) ~~the~~ unaudited Condensed Consolidated Statements of Cash ~~Flows,~~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, 2022				/s/ Lawrence F. Metz
				Lawrence F. Metz President and Co-Chief Executive Officer

				/s/ Patrick J. Haveron
				Patrick J. Haveron Co-Chief Executive Officer and Chief Financial Officer


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

		~~/s/ Karen L. Schmitt~~
		~~Karen L. Schmitt~~ ~~Chief Financial Officer~~

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



Bermuda			98-0570192
(State or other jurisdiction of incorporation or organization)			~~98-0570192~~ (IRS Employer Identification No.)
94 Pitts Bay Road
~~131 Front Street, Hamilton,~~ Pembroke
Bermuda			HM08
(Address of principal executive offices)			~~HM12~~ (Zip Code)



For the Nine Months Ended September 30,	2017			2016
Cash flows from operating activities
Net (loss) income	$	(44,888	)	$	117,512
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and share-based compensation	10,472			16,841
Net realized gains on investment	(8,316		)	(4,511		)
Foreign exchange losses (gains)	12,193			(6,474		)
Changes in assets – (increase) decrease:
Reinsurance balances receivable, net	(62,517		)	(154,091		)
Reinsurance recoverable on unpaid losses	(40,455		)	(26,281		)
Accrued investment income	1,545			(1,537		)
Deferred commission and other acquisition expenses	(43,171		)	(49,713		)
Other assets	(1,865		)	(32,027		)
Changes in liabilities – increase (decrease):
Reserve for loss and loss adjustment expenses	419,660			250,937
Unearned premiums	117,882			204,752
Accrued expenses and other liabilities	14,239			10,749
Net cash provided by operating activities	374,779			326,157
Cash flows from investing activities:
Purchases of investments:
Purchases of fixed-maturities – available-for-sale	(715,838		)	(732,001		)
Purchases of other investments	(986		)	(167		)
Sale of investments:
Proceeds from sales of fixed-maturities – available-for-sale	199,751			101,923
Proceeds from maturities and calls of fixed maturities – available-for-sale	302,496			442,490
Proceeds from maturities and calls of fixed maturities – held to maturity	20,744			—
Proceeds from sale and redemption of other investments	11,119			572
Increase in restricted cash and cash equivalents	(27,040		)	(103,685		)
Other, net	(2,299		)	(521		)
Net cash used in investing activities	(212,053		)	(291,389		)
Cash flows from financing activities:
Preference shares, net of issuance costs	144,942			—
Senior notes, net of issuance costs	—			106,424
Redemption of 2012 senior notes	(100,000		)	—
Redemption of 2011 senior notes	—			(107,500		)
Issuance of common shares	1,076			666
Repurchase of common shares	(14,912		)	(470		)
Dividends paid – Maiden common shareholders	(38,935		)	(31,062		)
Dividends paid – preference shares	(20,611		)	(27,723		)
Net cash used in financing activities	(28,440		)	(59,665		)
Effect of exchange rate changes on foreign currency cash	2,644			2,715
Net increase (decrease) in cash and cash equivalents	136,930			(22,182		)
Cash and cash equivalents, beginning of period	45,747			89,641
Cash and cash equivalents, end of period	$	182,677		$	67,459


For the Nine Months Ended September 30,	2022		2021
Cash flows from operating activities
Net (loss) income	$	(9,047)	$	14,258

Adjustments to reconcile net (loss) income to net cash flows from operating activities:
Depreciation, amortization and share-based compensation	1,628		7,798
Interest in loss (income) of equity method investments	2,143		(4,912)
Net realized and unrealized investment gains	(2,848)		(8,013)

Foreign exchange and other gains	(19,121)		(6,070)
Changes in assets – (increase) decrease:
Reinsurance balances receivable, net	6,163		(12,039)
Reinsurance recoverable on unpaid losses	6,238		6,590
Accrued investment income	635		3,663
Deferred commission and other acquisition expenses	9,192		11,460
Funds withheld receivable	1,037		9,916
Other assets	(235)		(385)
Changes in liabilities – increase (decrease):
Reserve for loss and loss adjustment expenses	(179,627)		(304,385)
Unearned premiums	(25,725)		(33,424)
Deferred gain on retroactive reinsurance	(270)		—
Accrued expenses and other liabilities	110,004		15,793


Net cash used in operating activities	(99,833)		(299,750)
Cash flows from investing activities:
Purchases of fixed maturities	(34,022)		(208,969)
Purchases of other investments	(28,225)		(23,647)
Purchases of equity method investments	(26,483)		(42,551)
Purchases of equity securities	(15,592)		(13,694)
Proceeds from sales of fixed maturities	139,645		332,636
Proceeds from maturities, paydowns and calls of fixed maturities	48,003		294,878
Proceeds from sale and redemption of other investments	3,794		341
Proceeds from sale and redemption of equity method investments	32,332		4,802
Proceeds from sale and redemption of equity securities	—		441
Others, net	(73)		(31)


Net cash provided by investing activities	119,379		344,206
Cash flows from financing activities:
Repurchase of common shares	(1,009)		(2,433)



Repurchase of preference shares	(9,984)		(132,153)
Change in other liabilities due to bank overdraft	—		5,764
Cash settlement of restricted shares granted and options exercised	10		(166)
Net cash used in financing activities	(10,983)		(128,988)
Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents	(2,152)		(333)
Net increase (decrease) in cash, restricted cash and cash equivalents	6,411		(84,865)
Cash, restricted cash and cash equivalents, beginning of period	66,087		135,826
Cash, restricted cash and cash equivalents, end of period	$	72,498	$	50,961


Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets:
Cash and cash equivalents, end of period	$	24,376	$	29,310
Restricted cash and cash equivalents, end of period	48,122		21,651
Total cash, restricted cash and cash equivalents, end of period	$	72,498	$	50,961



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

~~INDEX~~

				~~Page~~


				Page
PART I - Financial Information
Item 1.		Financial Statements

		Condensed Consolidated Balance Sheets as of September 30, ~~2017~~2022 (unaudited) and December 31, ~~2016~~2021 (audited)		3

		Condensed Consolidated Statements of Income for the Three and ~~Nine~~Nin e Months Ended ~~September~~Septe mber 30, ~~2017~~2022 and ~~2016~~2021 (unaudited)		4

		Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, ~~2017~~2022 and ~~2016~~2021 (unaudited)		5

		Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, ~~2017~~2022 and ~~2016~~2021 (unaudited)		6

		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, ~~2017~~2022 and ~~2016~~2021 (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~~	64

Item 4.	Controls and Procedures		66

PART II - Other Information

Item 1.		Legal Proceedings		67

Item 1A.		Risk Factors		67

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		67

Item 3.		Defaults Upon Senior Securities		67

Item 4.		Mine Safety Disclosures		67

Item 5.		Other Information		67

Item 6.		Exhibits		6867

		Signatures		6968


	September 30, 2017			December 31, 2016
	(Unaudited)			(Audited)				September 30, 2022		December 31, 2021
ASSETS							ASSETS	(Unaudited)		(Audited)
Investments:							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 2022 - $432,314; 2021 - $595,344)							Fixed maturities, available-for-sale, at fair value (amortized cost 2022 - $432,314; 2021 - $595,344)	$	371,973	$	597,145
Equity securities, at fair value (cost 2022 - $38,819; 2021 - $23,315)							Equity securities, at fair value (cost 2022 - $38,819; 2021 - $23,315)	42,600		24,003
Equity method investments							Equity method investments	80,165		83,742
Other investments							Other investments	140,804		117,722
Total investments	5,009,996			4,736,938			Total investments	635,542		822,612
Cash and cash equivalents	182,677			45,747			Cash and cash equivalents	24,376		26,668
Restricted cash and cash equivalents	131,598			103,788			Restricted cash and cash equivalents	48,122		39,419
Accrued investment income	35,547			36,517			Accrued investment income	4,655		5,695
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 $10,207 and $17,471 from related parties in 2022 and 2021, respectively)							Reinsurance balances receivable, net (includes $10,207 and $17,471 from related parties in 2022 and 2021, respectively)	12,368		19,507
Reinsurance recoverable on unpaid losses							Reinsurance recoverable on unpaid losses	547,975		562,845
Loan to related party	167,975			167,975			Loan to related party	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 $25,854 and $34,170 from related parties in 2022 and 2021, respectively)							Deferred commission and other acquisition expenses (includes $25,854 and $34,170 from related parties in 2022 and 2021, respectively)	27,295		36,703
Funds withheld receivable (includes $490,603 and $601,460 from related parties in 2022 and 2021, respectively)							Funds withheld receivable (includes $490,603 and $601,460 from related parties in 2022 and 2021, respectively)	516,589		636,412
Other assets	145,470			148,912			Other assets	4,717		4,774

Total assets	$	6,839,097		$	6,252,299		Total assets	$	1,989,614	$	2,322,610
LIABILITIES							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
Accrued expenses and other liabilities	175,540			161,334
Liability for investments purchased	21,658			6,402
Reserve for loss and loss adjustment expenses (includes $1,013,374 and $1,338,269 from related parties in 2022 and 2021, respectively)							Reserve for loss and loss adjustment expenses (includes $1,013,374 and $1,338,269 from related parties in 2022 and 2021, respectively)	$	1,146,084	$	1,489,373
Unearned premiums (includes $69,407 and $91,730 from related parties in 2022 and 2021, respectively)							Unearned premiums (includes $69,407 and $91,730 from related parties in 2022 and 2021, respectively)	73,760		100,131
Deferred gain on retroactive reinsurance							Deferred gain on retroactive reinsurance	39,270		48,960

Accrued expenses and other liabilities (includes $128,443 and $29,408 from related parties in 2022 and 2021, respectively)							Accrued expenses and other liabilities (includes $128,443 and $29,408 from related parties in 2022 and 2021, respectively)	147,591		44,542
Senior notes - principal amount	262,500			362,500			Senior notes - principal amount	262,500		262,500
Less: unamortized debt issuance costs	8,070			11,091			Less: unamortized debt issuance costs	6,984		7,153
Senior notes, net	254,430			351,409			Senior notes, net	255,516		255,347

Total liabilities	5,417,708			4,891,147			Total liabilities	1,662,221		1,938,353
Commitments and Contingencies							Commitments and Contingencies
EQUITY							EQUITY
Preference shares	465,000			315,000			Preference shares	119,672		159,210
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; 93,414,080 and 92,316,107 shares issued in 2022 and 2021, respectively; 87,161,499 and 86,467,242 shares outstanding in 2022 and 2021, respectively)							Common shares ($0.01 par value; 93,414,080 and 92,316,107 shares issued in 2022 and 2021, respectively; 87,161,499 and 86,467,242 shares outstanding in 2022 and 2021, respectively)	934		923
Additional paid-in capital	747,464			749,256			Additional paid-in capital	772,474		768,650
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		)
Total Maiden shareholders’ equity	1,421,027			1,360,797
Noncontrolling interests in subsidiaries	362			355
Total equity	1,421,389			1,361,152
Accumulated other comprehensive loss							Accumulated other comprehensive loss	(51,553)		(12,215)
Accumulated deficit							Accumulated deficit	(479,109)		(498,295)
Treasury shares, at cost (6,252,581 and 5,848,865 shares in 2022 and 2021, respectively)							Treasury shares, at cost (6,252,581 and 5,848,865 shares in 2022 and 2021, respectively)	(35,025)		(34,016)
Total shareholders’ equity							Total shareholders’ equity	327,393		384,257

Total liabilities and equity	$	6,839,097		$	6,252,299		Total liabilities and equity	$	1,989,614	$	2,322,610



	AFS fixed maturities				HTM fixed maturities
September 30, 2017	Amortized cost		Fair value		Amortized cost		Fair value
Maturity
Due in one year or less	$	40,440	$	38,784	$	49,293	$	49,298
Due after one year through five years	577,760		583,569		335,922		346,747
Due after five years through ten years	961,682		990,968		723,297		746,131
Due after ten years	2,500		2,603		9,856		9,930
	1,582,382		1,615,924		1,118,368		1,152,106
U.S. agency bonds – mortgage-backed	2,004,645		2,006,402		—		—
Asset-backed securities	257,969		262,261		—		—
Total fixed maturities	$	3,844,996	$	3,884,587	$	1,118,368	$	1,152,106



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 December 31, 2016	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	5,186	$	5,413	0.1	%
U.S. agency bonds	1,738,518		1,734,140		36.6	%
AAA	170,515		171,090		3.6	%
AA+, AA, AA-	238,315		237,169		5.0	%
A+, A, A-	1,386,023		1,374,860		29.0	%
BBB+, BBB, BBB-	1,053,529		1,047,376		22.2	%
BB+ or lower	165,768		167,753		3.5	%
Total fixed maturities	$	4,757,854	$	4,737,801	100.0	%



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

For the Three Months Ended September 30, 2016	Change in net unrealized gains on investment			Foreign currency translation adjustments			Total
Beginning balance	$	93,793		$	25,034		$	118,827
Other comprehensive income (loss) before reclassifications	8,899			(2,730		)	6,169
Amounts reclassified from AOCI to net income, net of tax	(1,202		)	—			(1,202		)
Net current period other comprehensive income (loss)	7,697			(2,730		)	4,967
Ending balance	101,490			22,304			123,794
Less: AOCI attributable to noncontrolling interest	—			(82		)	(82		)
Ending balance, Maiden shareholders	$	101,490		$	22,386		$	123,876

For the Nine Months Ended September 30, 2017	Change in net unrealized gains on investment			Foreign currency translation adjustments			Total
Beginning balance	$	(20,716	)	$	35,604		$	14,888
Other comprehensive income (loss) before reclassifications	68,803			(38,803		)	30,000
Amounts reclassified from AOCI to net income, net of tax	1,123			—			1,123
Net current period other comprehensive income (loss)	69,926			(38,803		)	31,123
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

For the Nine Months Ended September 30, 2016	Change in net unrealized gains on investment			Foreign currency translation adjustments			Total
Beginning balance	$	(54,112	)	$	30,231		$	(23,881	)
Other comprehensive income (loss) before reclassifications	155,024			(7,927		)	147,097
Amounts reclassified from AOCI to net income, net of tax	578			—			578
Net current period other comprehensive income (loss)	155,602			(7,927		)	147,675
Ending balance	101,490			22,304			123,794
Less: AOCI attributable to noncontrolling interest	—			(82		)	(82		)
Ending balance, Maiden shareholders	$	101,490		$	22,386		$	123,876



	Dividend per Share		Payable on:	Record date:
Common shares	$	0.15	January 16, 2018	January 2, 2018
Preference shares - Series A	$	0.515625	December 15, 2017	December 1, 2017
Preference shares - Series C	$	0.445313	December 15, 2017	December 1, 2017
Preference shares - Series D	$	0.418750	December 15, 2017	December 1, 2017



September 30, 2017	Fair Value		% of Holdings Based on Fair Value of All Fixed Income Securities		Rating⁽¹⁾
	($ in thousands)
Australia and New Zealand Banking Group, 3.70% Due 11/16/2025	$	26,505	0.5	%	AA-
Morgan Stanley, 4.00% Due 7/23/2025	26,383		0.5	%	BBB+
Schlumberger Holdings Corporation, 4.00% Due 12/21/2025	26,269		0.5	%	AA-
JP Morgan Chase & Co, 3.90% Due 7/15/2025	21,078		0.5	%	A-
Vale Overseas Ltd, 4.375% Due 1/11/2022	20,890		0.4	%	BBB-
Gilead Sciences Inc, 3.65% Due 3/1/2026	20,889		0.4	%	A
BNP Paribas, 5.00% Due 1/15/2021	20,732		0.4	%	A
Brookfield Asset Management Inc, 4.00%, Due 1/15/2025	20,590		0.4	%	A-
Rabobank Nederland Utrec, 3.875% Due 2/8/2022	20,261		0.4	%	A+
AT&T Inc, 2.625% Due 12/1/2022	19,997		0.4	%	BBB+
Total	$	223,594	4.4	%



Hypothetical Change in Interest Rates	Fair Value		Estimated Change in Fair Value			Hypothetical % (Decrease) Increase in Shareholders’ Equity
	($ in thousands)
200 basis point increase	$	3,555,940	$	(328,647	)	(23.1	)%
100 basis point increase	3,714,624		(169,963		)	(12.0	)%
No change	3,884,587		—			—	%
100 basis point decrease	4,068,897		184,310			13.0	%
200 basis point decrease	4,267,740		383,153			27.0	%



	September 30, 2017		December 31, 2016
A or better	98.7	%	97.2	%
B++ or worse	1.3	%	2.8	%
	100.0	%	100.0	%



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

~~Dividend per Share~~

~~Payable on:~~

~~Record date:~~

~~Common shares~~

~~October 16, 2017~~

~~October 2, 2017~~