For the Three Months Ended June 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total
Gross premiums written $ 9,687
$ (4,705 ) $ 4,982
Net premiums written $ 8,553
$ (4,463 ) $ 4,090
Net premiums earned $ 11,527
$ 9,781
$ 21,308
Other insurance revenue 250
—
250
Net loss and loss adjustment expenses ("loss and LAE") (6,038 ) (4,970 ) (11,008 )
Commission and other acquisition expenses (4,374 ) (3,780 ) (8,154 )
General and administrative expenses (1,746 ) (667 ) (2,413 )
Underwriting (loss) income $ (381 ) $ 364
(17 )
Reconciliation to net income from continuing operations
Net investment income and realized gains on investment 23,184
Interest and amortization expenses (4,830 )
Foreign exchange and other losses, net (2,295 )
Other general and administrative expenses (6,848 )
Income tax benefit 18
Net income from continuing operations $ 9,212

Net loss and LAE ratio⁽¹⁾
51.3 % 50.8 % 51.0 %
Commission and other acquisition expense ratio⁽²⁾
37.1 % 38.6 % 37.8 %
General and administrative expense ratio⁽³⁾
14.8 % 6.9 % 43.0 %
Expense ratio⁽⁴⁾
51.9 % 45.5 % 80.8 %
Combined ratio⁽⁵⁾
103.2 % 96.3 % 131.8 %

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 June 30, 2020	Diversified Reinsurance			AmTrust Reinsurance			Total
Gross premiums written	$	9,687		$	(4,705)		$	4,982
Net premiums written	$	8,553		$	(4,463)		$	4,090
Net premiums earned	$	11,527		$	9,781		$	21,308
Other insurance revenue	250			0			250
Net loss and LAE	(6,038)			(4,970)			(11,008)
Commission and other acquisition expenses	(4,374)			(3,780)			(8,154)
General and administrative expenses	(1,746)			(667)			(2,413)
Underwriting (loss) income	$	(381)		$	364		(17)
Reconciliation to net income
Net investment income and realized gains on investment							23,184

Interest and amortization expenses							(4,830)


Foreign exchange and other losses, net							(2,295)
Other general and administrative expenses							(6,848)
Income tax benefit							18

Net income							$	9,212

Net loss and LAE ratio(1)	51.3		%	50.8		%	51.0		%
Commission and other acquisition expense ratio(2)	37.1		%	38.6		%	37.8		%
General and administrative expense ratio(3)	14.8		%	6.9		%	43.0		%
Expense ratio(4)	51.9		%	45.5		%	80.8		%
Combined ratio(5)	103.2		%	96.3		%	131.8		%

For the Three Months Ended June 30, 2019 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 11,244
$ (9,127 ) $ —
$ 2,117
Net premiums written $ 8,718
$ (9,127 ) $ —
$ (409 )
Net premiums earned $ 22,472
$ 111,514
$ —
$ 133,986
Other insurance revenue 754
—
—
754
Net loss and LAE (12,497 ) (109,088 ) 24
(121,561 )
Commission and other acquisition expenses (8,147 ) (41,509 ) —
(49,656 )
General and administrative expenses (2,092 ) (562 ) —
(2,654 )
Underwriting income (loss) $ 490
$ (39,645 ) $ 24
(39,131 )
Reconciliation to net income from continuing operations
Net investment income and realized gains on investment 55,208
Interest and amortization expenses (4,830 )
Foreign exchange and other gains 1,207
Other general and administrative expenses (9,504 )
Income tax benefit 1,026
Net income from continuing operations $ 3,976

Net loss and LAE ratio⁽¹⁾
53.8 % 97.8 % 90.2 %
Commission and other acquisition expense ratio⁽²⁾
35.1 % 37.2 % 36.9 %
General and administrative expense ratio⁽³⁾
9.0 % 0.5 % 9.0 %
Expense ratio⁽⁴⁾
44.1 % 37.7 % 45.9 %
Combined ratio⁽⁵⁾
97.9 % 135.5 % 136.1 %

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 Six Months Ended June 30, 2021	Diversified Reinsurance			AmTrust Reinsurance			Total
Gross premiums written	$	5,263		$	(4,219)		$	1,044
Net premiums written	$	4,784		$	(4,219)		$	565
Net premiums earned	$	13,202		$	11,874		$	25,076
Other insurance revenue	808			0			808
Net loss and LAE	(2,662)			5,630			2,968
Commission and other acquisition expenses	(8,207)			(4,634)			(12,841)
General and administrative expenses	(4,607)			(1,378)			(5,985)
Underwriting (loss) income	$	(1,466)		$	11,492		10,026
Reconciliation to net income
Net investment income and realized gains on investment							26,069

Interest and amortization expenses							(9,663)


Foreign exchange and other gains, net							1,954
Other general and administrative expenses							(16,918)
Income tax benefit							208
Interest in income from equity method investments							5,722
Net income							$	17,398

Net loss and LAE ratio(1)	19.0		%	(47.4)		%	(11.5)		%
Commission and other acquisition expense ratio(2)	58.6		%	39.0		%	49.6		%
General and administrative expense ratio(3)	32.9		%	11.6		%	88.5		%
Expense ratio(4)	91.5		%	50.6		%	138.1		%
Combined ratio(5)	110.5		%	3.2		%	126.6		%

For the Six Months Ended June 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total
Gross premiums written $ 21,421
$ (4,705 ) $ 16,716
Net premiums written $ 18,925
$ (4,463 ) $ 14,462
Net premiums earned $ 24,058
$ 28,465
$ 52,523
Other insurance revenue 658
—
658
Net loss and LAE (13,079 ) (19,015 ) (32,094 )
Commission and other acquisition expenses (9,353 ) (10,774 ) (20,127 )
General and administrative expenses (3,359 ) (1,311 ) (4,670 )
Underwriting loss $ (1,075 ) $ (2,635 ) (3,710 )
Reconciliation to net income from continuing operations
Net investment income and realized gains on investment 52,186
Total other-than-temporary impairment losses (1,506 )
Interest and amortization expenses (9,661 )
Foreign exchange and other gains 5,902
Other general and administrative expenses (13,141 )
Income tax benefit 3
Net income from continuing operations $ 30,073

Net loss and LAE ratio⁽¹⁾
52.9 % 66.8 % 60.4 %
Commission and other acquisition expense ratio⁽²⁾
37.8 % 37.8 % 37.8 %
General and administrative expense ratio⁽³⁾
13.6 % 4.7 % 33.5 %
Expense ratio⁽⁴⁾
51.4 % 42.5 % 71.3 %
Combined ratio⁽⁵⁾
104.3 % 109.3 % 131.7 %

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 Six Months Ended June 30, 2020	Diversified Reinsurance			AmTrust Reinsurance			Total
Gross premiums written	$	21,421		$	(4,705)		$	16,716
Net premiums written	$	18,925		$	(4,463)		$	14,462
Net premiums earned	$	24,058		$	28,465		$	52,523
Other insurance revenue	658			0			658
Net loss and LAE	(13,079)			(19,015)			(32,094)
Commission and other acquisition expenses	(9,353)			(10,774)			(20,127)
General and administrative expenses	(3,359)			(1,311)			(4,670)
Underwriting loss	$	(1,075)		$	(2,635)		(3,710)
Reconciliation to net income
Net investment income and realized gains on investment							52,186
Total other-than-temporary impairment losses							(1,506)
Interest and amortization expenses							(9,661)


Foreign exchange and other gains, net							5,902
Other general and administrative expenses							(13,141)
Income tax benefit							3

Net income							$	30,073

Net loss and LAE ratio(1)	52.9		%	66.8		%	60.4		%
Commission and other acquisition expense ratio(2)	37.8		%	37.8		%	37.8		%
General and administrative expense ratio(3)	13.6		%	4.7		%	33.5		%
Expense ratio(4)	51.4		%	42.5		%	71.3		%
Combined ratio(5)	104.3		%	109.3		%	131.7		%

For the Six Months Ended June 30, 2019 Diversified Reinsurance AmTrust Reinsurance Other Total
Gross premiums written $ 26,582
$ (585,604 ) $ —
$ (559,022 )
Net premiums written $ 23,665
$ (585,604 ) $ —
$ (561,939 )
Net premiums earned $ 47,764
$ 269,324
$ —
$ 317,088
Other insurance revenue 1,566
—
—
1,566
Net loss and LAE (26,888 ) (247,158 ) (204 ) (274,250 )
Commission and other acquisition expenses (17,408 ) (101,865 ) —
(119,273 )
General and administrative expenses (5,123 ) (1,828 ) —
(6,951 )
Underwriting loss $ (89 ) $ (81,527 ) $ (204 ) (81,820 )
Reconciliation to net loss from continuing operations
Net investment income and realized gains on investment 76,129
Interest and amortization expenses (9,659 )
Foreign exchange and other gains 6,186
Other general and administrative expenses (21,826 )
Income tax benefit 1,064
Net loss from continuing operations $ (29,926 )

Net loss and LAE ratio⁽¹⁾
54.5 % 91.8 % 86.1 %
Commission and other acquisition expense ratio⁽²⁾
35.3 % 37.8 % 37.4 %
General and administrative expense ratio⁽³⁾
10.4 % 0.7 % 9.0 %
Expense ratio⁽⁴⁾
45.7 % 38.5 % 46.4 %
Combined ratio⁽⁵⁾
100.2 % 130.3 % 132.5 %

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


~~(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.~~

(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 the Company's reportable segments including the reconciliation to the Company's consolidated total assets at June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:


June 30, 2021	Diversified Reinsurance		AmTrust Reinsurance		Total








Total assets - reportable segments	$	132,083	$	2,051,535	$	2,183,618
Corporate assets	0		0		423,152

Total Assets	$	132,083	$	2,051,535	$	2,606,770

December 31, 2020	Diversified Reinsurance		AmTrust Reinsurance		Total








Total assets - reportable segments	$	156,380	$	2,329,377	$	2,485,757
Corporate assets	0		0		462,698

Total Assets	$	156,380	$	2,329,377	$	2,948,455

June 30, 2020 Diversified Reinsurance AmTrust Reinsurance Total
Total assets - reportable segments $ 157,302
$ 2,570,738
$ 2,728,040
Corporate assets —
—
485,396
Total Assets $ 157,302
$ 2,570,738
$ 3,213,436

December 31, 2019 Diversified Reinsurance AmTrust Reinsurance Total
Total assets - reportable segments $ 167,845
$ 2,843,802
$ 3,011,647
Corporate assets —
—
556,549
Total Assets $ 167,845
$ 2,843,802
$ 3,568,196

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 tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


For the Three Months Ended June 30,	2021		2020
Net premiums written	Total			Total
Diversified Reinsurance

International	$	5,028		$	8,498
Other	(10)			55

Total Diversified Reinsurance	5,018			8,553
AmTrust Reinsurance
Small Commercial Business	(1,594)			(6,394)
Specialty Program	(4)			477
Specialty Risk and Extended Warranty	(159)			1,454
Total AmTrust Reinsurance	(1,757)			(4,463)

Total Net Premiums Written	$	3,261		$	4,090

For the Six Months Ended June 30,	2021		2020
Net premiums written	Total			Total
Diversified Reinsurance

International	$	4,784		$	18,870
Other	0			55

Total Diversified Reinsurance	4,784			18,925
AmTrust Reinsurance
Small Commercial Business	(4,072)			(6,394)
Specialty Program	(29)			477
Specialty Risk and Extended Warranty	(118)			1,454
Total AmTrust Reinsurance	(4,219)			(4,463)

Total Net Premiums Written	$	565		$	14,462

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

For the Three Months Ended June 30, 2020 2019
Net premiums written Total Total
Diversified Reinsurance
International $ 8,498
$ 8,736
Other 55
(18 )
Total Diversified Reinsurance 8,553
8,718
AmTrust Reinsurance
Small Commercial Business (6,394 ) 5,515
Specialty Program 477
(16,031 )
Specialty Risk and Extended Warranty 1,454
1,389
Total AmTrust Reinsurance (4,463 ) (9,127 )
Total Net Premiums Written $ 4,090
$ (409 )

For the Six Months Ended June 30, 2020 2019
Net premiums written Total Total
Diversified Reinsurance
International $ 18,870
$ 23,683
Other 55
(18 )
Total Diversified Reinsurance 18,925
23,665
AmTrust Reinsurance
Small Commercial Business (6,394 ) (337,166 )
Specialty Program 477
(28,639 )
Specialty Risk and Extended Warranty 1,454
(219,799 )
Total AmTrust Reinsurance (4,463 ) (585,604 )
Total Net Premiums Written $ 14,462
$ (561,939 )
3. Segment Information (continued)

The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


For the Three Months Ended June 30,	2021				2020
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance

International	$	6,972	52.4	%	$	11,472	53.8	%
Other	(10)		(0.1)	%	55		0.3	%

Total Diversified Reinsurance	6,962		52.3	%	11,527		54.1	%
AmTrust Reinsurance
Small Commercial Business	(1,495)		(11.2)	%	(7,112)		(33.4)	%
Specialty Program	2		0	%	426		2.0	%
Specialty Risk and Extended Warranty	7,843		58.9	%	16,467		77.3	%
Total AmTrust Reinsurance	6,350		47.7	%	9,781		45.9	%

Total Net Premiums Earned	$	13,312	100.0	%	$	21,308	100.0	%

For the Six Months Ended June 30,	2021				2020
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance

International	$	13,202	52.6	%	$	24,003	45.7	%
Other	0		0	%	55		0.1	%

Total Diversified Reinsurance	13,202		52.6	%	24,058		45.8	%
AmTrust Reinsurance
Small Commercial Business	(3,846)		(15.3)	%	(6,173)		(11.8)	%
Specialty Program	(16)		(0.1)	%	501		1.0	%
Specialty Risk and Extended Warranty	15,736		62.8	%	34,137		65.0	%
Total AmTrust Reinsurance	11,874		47.4	%	28,465		54.2	%

Total Net Premiums Earned	$	25,076	100.0	%	$	52,523	100.0	%

For the Three Months Ended June 30, 2020 2019
Net premiums earned Total % of Total Total % of Total
Diversified Reinsurance
International $ 11,472
53.8 % $ 22,490
16.8 %
Other 55
0.3 % (18 ) — %
Total Diversified Reinsurance 11,527
54.1 % 22,472
16.8 %
AmTrust Reinsurance
Small Commercial Business (7,112 ) (33.4 )% 23,283
17.4 %
Specialty Program 426
2.0 % 30,326
22.6 %
Specialty Risk and Extended Warranty 16,467
77.3 % 57,905
43.2 %
Total AmTrust Reinsurance 9,781
45.9 % 111,514
83.2 %
Total Net Premiums Earned $ 21,308
100.0 % $ 133,986
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)~~

For the Six Months Ended June 30, 2020 2019
Net premiums earned Total % of Total Total % of Total
Diversified Reinsurance
International $ 24,003
45.7 % $ 47,782
15.1 %
Other 55
0.1 % (18 ) — %
Total Diversified Reinsurance 24,058
45.8 % 47,764
15.1 %
AmTrust Reinsurance
Small Commercial Business (6,173 ) (11.8 )% 62,738
19.8 %
Specialty Program 501
1.0 % 106,547
33.6 %
Specialty Risk and Extended Warranty 34,137
65.0 % 100,039
31.5 %
Total AmTrust Reinsurance 28,465
54.2 % 269,324
84.9 %
Total Net Premiums Earned $ 52,523
100.0 % $ 317,088
100.0 %

4. Investments


a)	~~Fixed Maturities~~

The ~~original or amortized cost, estimated~~Company holds: (i) AFS portfolios of fixed maturity and equity securities, carried at fair value; (ii) other investments, of which certain investments are carried at 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 at June 30, ~~2020~~2021 and December 31, ~~2019~~2020 are as follows:


June 30, 2021	Original or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
U.S. treasury bonds	$	78,481	$	0	$	(27)	$	78,454
U.S. agency bonds – mortgage-backed	148,520		5,028		(95)		153,453

Non-U.S. government bonds	3,167		273		0		3,440
Asset-backed securities	194,648		1,242		(598)		195,292
Corporate bonds	486,731		25,657		(4,342)		508,046


Total fixed maturity investments	$	911,547	$	32,200	$	(5,062)	$	938,685

June 30, 2020 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value
U.S. treasury bonds $ 210,512
$ 673
$ (2 ) $ 211,183
U.S. agency bonds – mortgage-backed 421,150
14,608
(375 ) 435,383
Non-U.S. government and supranational bonds 7,284
327
(46 ) 7,565
Asset-backed securities 186,908
935
(3,833 ) 184,010
Corporate bonds 596,444
22,360
(17,382 ) 601,422
Total fixed maturity investments $ 1,422,298
$ 38,903
$ (21,638 ) $ 1,439,563

December 31, 2019 Original or amortized cost Gross unrealized gains Gross unrealized losses Fair value
U.S. treasury bonds $ 94,921
$ 704
$ —
$ 95,625
U.S. agency bonds – mortgage-backed 533,296
6,717
(1,291 ) 538,722
Non-U.S. government and supranational bonds 11,796
294
(91 ) 11,999
Asset-backed securities 187,881
821
(532 ) 188,170
Corporate bonds 981,441
31,140
(15,725 ) 996,856
Municipal bonds 4,091
55
—
4,146
Total fixed maturity investments $ 1,813,426
$ 39,731
$ (17,639 ) $ 1,835,518

~~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, 2020	Original or amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
U.S. treasury bonds	$	94,468	$	34	$	0	$	94,502
U.S. agency bonds – mortgage-backed	272,124		9,439		(126)		281,437

Non-U.S. government bonds	8,641		1,067		0		9,708
Asset-backed securities	184,227		1,611		(406)		185,432
Corporate bonds	604,463		40,904		(3,035)		642,332


Total fixed maturity investments	$	1,163,923	$	53,055	$	(3,567)	$	1,213,411

The contractual maturities of our fixed maturities are shown ~~in the table~~ 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.

June 30, 2020 Amortized cost Fair value
Due in one year or less $ 238,418
$ 237,728
Due after one year through five years 476,319
479,611
Due after five years through ten years 99,503
102,831
814,240
820,170
U.S. agency bonds – mortgage-backed 421,150
435,383
Asset-backed securities 186,908
184,010
Total fixed maturity investments $ 1,422,298
$ 1,439,563



June 30, 2021	Amortized cost		Fair value
Due in one year or less	$	60,592	$	59,782
Due after one year through five years	435,090		454,445
Due after five years through ten years	65,363		68,361
Due after ten years	7,334		7,352
	568,379		589,940
U.S. agency bonds – mortgage-backed	148,520		153,453
Asset-backed securities	194,648		195,292
Total fixed maturity investments	$	911,547	$	938,685

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
June 30, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. treasury bonds	$	78,454	$	(27)	$	0	$	0	$	78,454	$	(27)
U.S. agency bonds – mortgage-backed	8,175		(95)		0		0		8,175		(95)

Asset-backed securities	42,265		(536)		11,288		(62)		53,553		(598)
Corporate bonds	36,244		(1,311)		53,475		(3,031)		89,719		(4,342)

Total temporarily impaired fixed maturities	$	165,138	$	(1,969)	$	64,763	$	(3,093)	$	229,901	$	(5,062)

Less than 12 Months 12 Months or More Total
June 30, 2020 Fair
value Unrealized
losses Fair
value Unrealized
losses Fair
value Unrealized
losses
U.S. treasury bonds $ 60,586
$ (2 ) $ —
$ —
$ 60,586
$ (2 )
U.S. agency bonds – mortgage-backed 39,380
(280 ) 14,104
(95 ) 53,484
(375 )
Non-U.S. government and supranational bonds 116
(6 ) 578
(40 ) 694
(46 )
Asset-backed securities 102,486
(2,398 ) 52,170
(1,435 ) 154,656
(3,833 )
Corporate bonds 51,660
(5,094 ) 114,729
(12,288 ) 166,389
(17,382 )
Total temporarily impaired fixed maturities $ 254,228
$ (7,780 ) $ 181,581
$ (13,858 ) $ 435,809
$ (21,638 )

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)

At June 30, ~~2020,~~2021, there were ~~134~~45 securities in an unrealized loss position with a fair value of ~~$435,809~~$229,901 and unrealized losses of ~~$21,638.~~$5,062. Of these securities, there were 6518 securities that have been in an unrealized loss position for twelve months or greater with a fair value of ~~$181,581~~$64,763 and unrealized losses of ~~$13,858.~~$3,093.

Less than 12 Months 12 Months or More Total
December 31, 2019 Fair
value Unrealized
losses Fair
value Unrealized
losses Fair
value Unrealized
losses
U.S. agency bonds – mortgage-backed $ 31,401
$ (257 ) $ 85,008
$ (1,034 ) $ 116,409
$ (1,291 )
Non-U.S. government and supranational bonds 1,824
(22 ) 701
(69 ) 2,525
(91 )
Asset-backed securities 60,863
(240 ) 17,594
(292 ) 78,457
(532 )
Corporate bonds 29,692
(305 ) 159,216
(15,420 ) 188,908
(15,725 )
Total temporarily impaired fixed maturities $ 123,780
$ (824 ) $ 262,519
$ (16,815 ) $ 386,299
$ (17,639 )


	Less than 12 Months				12 Months or More				Total
December 31, 2020	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses

U.S. agency bonds – mortgage-backed	$	19,360	$	(85)	$	5,646	$	(41)	$	25,006	$	(126)


Asset-backed securities	13,371		(217)		31,052		(189)		44,423		(406)
Corporate bonds	31,839		(890)		65,296		(2,145)		97,135		(3,035)

Total temporarily impaired fixed maturities	$	64,570	$	(1,192)	$	101,994	$	(2,375)	$	166,564	$	(3,567)

At December 31, ~~2019,~~2020, there were ~~104~~53 securities in an unrealized loss position with a fair value of ~~$386,299~~$166,564 and unrealized losses of ~~$17,639.~~$3,567. Of these securities, there were 6735 securities that have been in an unrealized loss position for twelve months or greater with a fair value of ~~$262,519~~$101,994 and unrealized losses of ~~$16,815.~~$2,375.

Other-than-temporarily impaired

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 June 30, ~~2020,~~2021, we determined that unrealized losses on fixed maturities were primarily due to changes in interest rates as well as the impact of foreign exchange rate changes on certain foreign currency denominated fixed maturities since their date of purchase. 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 plan to sell and for which ~~the Company is~~we are not more likely than not to be required to sell is recognized in net earnings, with the non-credit related impairment recognized in comprehensive earnings.

Based on ~~our~~ analysis, our fixed maturity portfolio is of high credit quality and we 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 it will receive contractual or estimated cash flows in the form of principal and interest. For the six months ended June 30, 2020, the Company recognized $1,506 ofin OTTI charges ~~were recognized~~ in earnings on 2 fixed maturity securities. There ~~were no OTTI losses recognized in the three months ended June 30, 2020 and in~~was 0 impairment recorded for the three and six months ended June 30, ~~2019.~~2021 and the three months ended June 30, 2020.

The following tables summarize the credit ratings of our fixed maturities as at June 30, 2021 and December 31, 2020:


June 30, 2021	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	78,481	$	78,454	8.4	%
U.S. agency bonds	148,520		153,453		16.3	%
AAA	124,254		124,569		13.3	%
AA+, AA, AA-	72,130		73,304		7.8	%
A+, A, A-	220,396		227,914		24.3	%
BBB+, BBB, BBB-	225,475		236,805		25.2	%
BB+ or lower	42,291		44,186		4.7	%
Total fixed maturities (1)	$	911,547	$	938,685	100.0	%


December 31, 2020	Amortized cost		Fair value		% of Total fair value
U.S. treasury bonds	$	94,468	$	94,502	7.8	%
U.S. agency bonds	272,124		281,437		23.2	%
AAA	96,453		97,515		8.0	%
AA+, AA, AA-	114,751		118,534		9.8	%
A+, A, A-	265,725		281,364		23.2	%
BBB+, BBB, BBB-	274,406		292,493		24.1	%
BB+ or lower	45,996		47,566		3.9	%
Total fixed maturities(1)	$	1,163,923	$	1,213,411	100.0	%

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

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 following tables summarize~~b)Other Investments and Equity Method Investments

Certain of the ~~credit ratings~~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 ~~our fixed maturities as at June 30, 2020~~redemption and ~~December 31, 2019:~~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

June 30, 2020 Amortized cost Fair value % of Total
fair value
U.S. treasury bonds $ 210,512
$ 211,183
14.7 %
U.S. agency bonds 421,150
435,383
30.2 %
AAA 97,579
96,314
6.7 %
AA+, AA, AA- 111,053
110,763
7.7 %
A+, A, A- 233,775
236,501
16.4 %
BBB+, BBB, BBB- 311,877
315,567
21.9 %
BB+ or lower 36,352
33,852
2.4 %
Total fixed maturities ⁽¹⁾
$ 1,422,298
$ 1,439,563
100.0 %

December 31, 2019 Amortized cost Fair value % of Total
fair value
U.S. treasury bonds $ 94,921
$ 95,625
5.2 %
U.S. agency bonds 533,296
538,722
29.4 %
AAA 99,212
99,542
5.4 %
AA+, AA, AA- 101,491
101,467
5.5 %
A+, A, A- 540,002
549,479
29.9 %
BBB+, BBB, BBB- 438,731
445,202
24.3 %
BB+ or lower 5,773
5,481
0.3 %
Total fixed maturities⁽¹⁾
$ 1,813,426
$ 1,835,518
100.0 %


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


b)	~~Other Investments~~

The table ~~below~~ shows the ~~fair value~~composition of the Company's other investments as at June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

June 30, 2020 December 31, 2019
Fair value % of Total
fair value Fair value % of Total
fair value
Investment in limited partnerships $ 2,908
50.9 % $ 3,077
63.1 %
Other 2,800
49.1 % 1,800
36.9 %
Total other investments $ 5,708
100.0 % $ 4,877
100.0 %


	June 30, 2021				December 31, 2020
	Carrying value		% of Total		Carrying value		% of Total
Private equity investments	$	27,544	31.2	%	$	23,294	34.8	%
Private credit lending investments	8,451		9.6	%	1,301		1.9	%
Investment in limited partnerships	13,957		15.8	%	3,044		4.5	%
Other investments	1,800		2.0	%	2,800		4.2	%
Total other investments at fair value	51,752		58.6	%	30,439		45.4	%
Investments in direct lending entities (at cost)	36,486		41.4	%	36,571		54.6	%
Total other investments	$	88,238	100.0	%	$	67,010	100.0	%

Private equity investments consist of direct investments in privately held entities. Investments in limited partnerships consist of investments in private equity funds and private equity co-investments with sponsoring entities. The ~~Company also holds other~~Company's investments ~~made by special purpose vehicles ("SPV") related to~~in direct lending ~~activities~~entities of ~~$30,346~~$36,486 at June 30, ~~2020~~2021 (December 31, ~~2019~~2020 - ~~$26,871). These investments~~$36,571) are carried at cost less impairment, if any, with any indication of impairment recognized in income when determined. ~~Because these investments are carried at cost, they are not included in the table above.~~ Please see "Note 55(d) - Fair Value Measurements" for additional ~~information.~~information regarding this investment.

The ~~Company has~~Company's remaining unfunded commitments on ~~its investment~~other investments as at June 30, 2021 and December 31, 2020 were:


	June 30, 2021				December 31, 2020
	Fair Value		% of Total		Fair Value		% of Total
Private equity investments	$	10,076	15.2	%	$	9,580	15.2	%
Private credit lending investments	26,610		40.1	%	33,584		53.0	%
Investments in direct lending entities	19,823		29.9	%	19,823		31.3	%
Investment in limited partnerships	9,842		14.8	%	326		0.5	%
Total unfunded commitments on other investments	$	66,351	100.0	%	$	63,313	100.0	%

Equity Method Investments

The equity method investments include hedge funds and investments in limited partnerships such as direct lending funds and real estate funds. The table below shows the carrying value of ~~$333~~the Company's equity method investments as at June 30, ~~2020 (December~~2021 and December 31, ~~2019 - $340). The~~2020:


	June 30, 2021				December 31, 2020
	Carrying Value		% of Total		Carrying Value		% of Total
Hedge fund investments	$	33,058	55.0	%	$	29,435	73.8	%
Investment in limited partnerships	27,055		45.0	%	10,451		26.2	%
Total equity method investments	$	60,113	100.0	%	$	39,886	100.0	%

Certain of the Company's investments include an interest in variable interest entities which are not consolidated limited partnerships, as it has been determined that the Company ~~also has a remaining unfunded commitment~~is not the primary beneficiary. However, there is deemed to be 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 ~~its investment in special purpose vehicles focused on lending activities~~the Company’s proportionate share of ~~$215 at June 30, 2020 (December 31, 2019 - $767).~~the investee's net income or loss.

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)


c)	~~Net Investment Income~~

Generally, the maximum exposure to loss on these interests is limited to the amount of commitment made by the Company. However, 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 and are more fully described (as applicable) in "Note 11 - Commitments, Contingencies and Guarantees" in these financial statements.The Company's remaining unfunded commitments on equity method investments as at June 30, 2021 was $45,691.

c)Net Investment Income

Net investment income was derived from the following ~~sources:~~sources for the three and six months ended June 30, 2021 and 2020:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Fixed maturities	$	4,395	$	9,635	$	11,086	$	22,286
Income on funds withheld	2,715		4,009		5,220		7,862
Interest income from loan to related party	866		860		1,726		2,225
Cash and cash equivalents and other investments	107		159		236		655
	8,083		14,663		18,268		33,028

Investment expenses	(805)		(354)		(1,149)		(755)
Net investment income	$	7,278	$	14,309	$	17,119	$	32,273

For the Three Months Ended June 30, For the Six Months Ended June 30,
2020 2019 2020 2019
Fixed maturities $ 9,635
$ 23,522
$ 22,286
$ 49,742
Funds withheld interest 4,009
5,169
7,862
9,706
Loan to related party 860
1,842
2,225
3,664
Cash and cash equivalents and other 159
1,316
655
1,591
14,663
31,849
33,028
64,703
Investment expenses (354 ) (727 ) (755 ) (1,559 )
Net investment income $ 14,309
$ 31,122
$ 32,273
$ 63,144

d) Realized Gains (Losses) on Investment


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

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


For the Three Months Ended June 30, 2021	Gross gains		Gross losses		Net
Fixed maturities	$	1,204	$	(95)	$	1,109
Equity securities	0		(611)		(611)
Other investments	351		0		351
Net realized gains (losses) on investment	$	1,555	$	(706)	$	849

For the Three Months Ended June 30, 2020	Gross gains		Gross losses		Net
Fixed maturities	$	9,059	$	0	$	9,059

Other investments	0		(184)		(184)
Net realized gains (losses) on investment	$	9,059	$	(184)	$	8,875

For the Six Months Ended June 30, 2021	Gross gains		Gross losses		Net
AFS fixed maturities	$	4,247	$	(244)	$	4,003
Equity securities	4,957		(611)		4,346
Other investments	626		(25)		601
Net realized gains (losses) on investment	$	9,830	$	(880)	$	8,950

For the Six Months Ended June 30, 2020	Gross gains		Gross losses		Net
AFS fixed maturities	$	19,991	$	(1)	$	19,990

Other investments	107		(184)		(77)
Net realized gains (losses) on investment	$	20,098	$	(185)	$	19,913

For the Three Months Ended June 30, 2020 Gross gains Gross losses Net
Fixed maturities $ 9,059
$ —
$ 9,059
Other investments —
(184 ) (184 )
Net realized gains (losses) on investment $ 9,059
$ (184 ) $ 8,875

For the Three Months Ended June 30, 2019 Gross gains Gross losses Net
Fixed maturities $ 25,436
$ (1,501 ) $ 23,935
Other investments 151
—
151
Net realized gains (losses) on investment $ 25,587
$ (1,501 ) $ 24,086

For the Six Months Ended June 30, 2020 Gross gains Gross losses Net
AFS fixed maturities $ 19,991
$ (1 ) $ 19,990
Other investments 107
(184 ) (77 )
Net realized gains (losses) on investment $ 20,098
$ (185 ) $ 19,913

For the Six Months Ended June 30, 2019 Gross gains Gross losses Net
AFS fixed maturities $ 27,860
$ (14,881 ) $ 12,979
Other investments 151
(145 ) 6
Net realized gains (losses) on investment $ 28,011
$ (15,026 ) $ 12,985

~~Proceeds from sales of fixed maturities were $181,030 and $405,501 for the three and six months ended June 30, 2020, respectively (2019 - $625,254 and $709,615, respectively).~~

~~Net unrealized gains on investments were as follows at June 30, 2020 and December 31, 2019, respectively:~~

June 30, 2020 December 31, 2019
Fixed maturities $ 17,266
$ 22,092
Deferred income tax (82 ) (96 )
Net unrealized gains, net of deferred income tax $ 17,184
$ 21,996
Change, net of deferred income tax $ (4,812 ) $ 81,758
19

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

~~6. Discontinued Operations~~a)Common Shares

~~Sale~~At June 30, 2021, the aggregate authorized share capital of ~~U.S. Treaty~~the Company is 150,000,000 shares from which 92,233,783 common shares were issued, of which 86,420,221 common shares are outstanding, and 18,600,000 preference shares were issued, all of which are outstanding. The remaining 39,166,217 shares are undesignated at June 30, 2021. Excluding the preference shares held by Maiden Reinsurance, ~~operations~~a total of 7,255,368 preference shares are held by non-affiliates.

Asb)Preference Shares

On March 3, 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 $100,000 of the Company's preference shares from time to time at market prices in open market purchases or as may be privately negotiated. On May 6, 2021, the Company's Board of Directors approved the additional repurchase, including the repurchase by Maiden Reinsurance in accordance with its investment guidelines (as may be amended), of up to $50,000 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 that were approved on March 3, 2021 and May 6, 2021 as described ~~in Part II~~above are collectively referred to as the "2021 Preference Share Repurchase Program".

The following table shows the summary of ~~our~~repurchases made of the Company's preference shares pursuant to the 2021 Preference Share Repurchase Program during the three and six months ended June 30, 2021:


	For the Three Months Ended June 30, 2021			For the Six Months Ended June 30, 2021
		Number of shares purchased		Average price of shares purchased		Number of shares purchased		Average price of shares purchased

Series A		822,104		$	14.52	3,383,740		$	14.79
Series C		646,817		14.17		2,675,778		14.54
Series D		433,623		14.22		2,457,519		14.53
Total		1,902,544		14.33		8,517,037		14.64

Total price paid		$	27,264			$	124,658
Gain on purchase		$	18,714			$	81,164

The following table shows the summary of changes for the Company's preference shares outstanding at June 30, 2021:


	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

Shares held by Maiden Reinsurance - December 31, 2020	545,218		1,203,466		1,078,911		2,827,595
Shares purchased by Maiden Reinsurance during the three months ended March 31, 2021	2,561,636		2,028,961		2,023,896		6,614,493
Shares purchased by Maiden Reinsurance during the three months ended June 30, 2021	822,104		646,817		433,623		1,902,544
Total shares held by Maiden Reinsurance - June 30, 2021	3,928,958		3,879,244		3,536,430		11,344,632
Total shares held by non-affiliates - June 30, 2021	2,071,042		2,720,756		2,463,570		7,255,368
Percentage held by Maiden Reinsurance - June 30, 2021	65.5	%	58.8	%	58.9	%	61.0	%

The Company has a remaining authorization of $25,342 for preference share repurchases at June 30, 2021. 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, 2019, the Company entered into a renewal rights transaction with Transatlantic Reinsurance Company on August 29, 2018 and subsequently sold Maiden US on December 27, 2018 to Enstar. Maiden US was a substantial portion of the Diversified Reinsurance segment; therefore the Company concluded that the sale represented a strategic shift that has a major effect on its ongoing operations and financial results and that all of the held for sale criteria were met. Accordingly, all transactions related to the U.S. treaty reinsurance operations are reported and presented as part the results from discontinued operations in the Condensed Consolidated Statements of Income.2020.

~~As described in Part II of our Annual Report on Form 10-K for the year ended December 31, 2019~~c), Cavello Bay Reinsurance Limited ("Cavello"), Enstar’s Bermuda reinsurance affiliate, 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 retroceded to Cavello on December 27, 2018. As at December 31, 2018, the assets and liabilities related to this business including the retrocession agreement were classified as held for sale, however, a decision was made to reclassify them as it is now considered unlikely that these reserves will be novated in the foreseeable future; therefore, there are no remaining assets and liabilities classified as held for sale as at June 30, 2020 and December 31, 2019.Treasury Shares

~~The following table summarizes~~During the ~~major classes of items constituting the net loss from discontinued operations for the three and~~ six months ended June 30, ~~2019 presented~~2021, the Company repurchased a total of 799,548 (2020 - 834) common shares at an average price per share of $2.95 (2020 - $1.13) from employees, which represent withholding in respect of tax obligations on the ~~unaudited Condensed Consolidated Statements~~vesting of ~~Income:~~

For the Three Months Ended June 30, For the Six Months Ended June 30,
2019 2019
Net loss and loss adjustment expenses $ 6,363
$ 6,363
General and administrative expenses (1,506 ) (1,843 )
Income from discontinued operations before income tax 4,857
4,520
Loss on disposal of discontinued operations (23,077 ) (25,474 )
Income tax expense (1,169 ) (1,169 )
Loss from discontinued operations, net of income tax $ (19,389 ) $ (22,123 )

~~As a result of the Settlement~~both non-performance-based and ~~Commutation Agreement entered into by Maiden and Enstar on July 31, 2019, Maiden recorded an additional loss from discontinued operations of $16,715 for~~discretionary performance-based restricted shares. There were 0 such repurchases during the three ~~and six~~ months ended June 30, ~~2019.~~2021 (2020 - 834 common shares at an average price per share of $1.13).

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)

On February 21, 2017, the Company's Board of Directors approved the repurchase of up to $100,000 of the Company's common shares from time to time at market prices. The Company has a remaining authorization of $74,245 for share repurchases at June 30, 2021 (December 31, 2020 - $74,245). NaN repurchases were made during the three and six months ended June 30, 2021 and 2020 under the common share repurchase plan.

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 June 30, 2021	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	24,605	$	(15,354)	$	9,251
Other comprehensive loss before reclassifications	(194)		(2,555)		(2,749)
Amounts reclassified from AOCI to net income, net of tax	(779)		0		(779)
Net current period other comprehensive loss	(973)		(2,555)		(3,528)


Ending balance, Maiden shareholders	$	23,632	$	(17,909)	$	5,723

For the Three Months Ended June 30, 2020	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	(22,125)	$	(4,163)	$	(26,288)
Other comprehensive income (loss) before reclassifications	41,677		(3,820)		37,857
Amounts reclassified from AOCI to net income, net of tax	(2,368)		0		(2,368)
Net current period other comprehensive income (loss)	39,309		(3,820)		35,489


Ending balance, Maiden shareholders	$	17,184	$	(7,983)	$	9,201
For the Six Months Ended June 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	(20,700)		7,591		(13,109)
Amounts reclassified from AOCI to net income, net of tax	(5,025)		0		(5,025)
Net current period other comprehensive (loss) income	(25,725)		7,591		(18,134)


Ending balance, Maiden shareholders	$	23,632	$	(17,909)	$	5,723
For the Six Months Ended June 30, 2020	Change in net unrealized gains on investment		Foreign currency translation		Total
Beginning balance	$	21,996	$	(4,160)	$	17,836
Other comprehensive income (loss) before reclassifications	1,589		(3,823)		(2,234)
Amounts reclassified from AOCI to net income, net of tax	(6,401)		0		(6,401)
Net current period other comprehensive loss	(4,812)		(3,823)		(8,635)


Ending balance, Maiden shareholders	$	17,184	$	(7,983)	$	9,201

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

Senior Notes

At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, both Maiden Holdings and its wholly owned subsidiary, Maiden NA, ~~have~~had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior ~~Notes~~"Notes") and 2013 ("2013 Senior ~~Notes~~"Notes"), respectively (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 June 30, ~~2020~~2021 and December 31, ~~2019:~~2020:

June 30, 2020 2016 Senior Notes 2013 Senior Notes Total
Principal amount $ 110,000
$ 152,500
$ 262,500
Less: unamortized issuance costs 3,541
3,943
7,484
Carrying value $ 106,459
$ 148,557
$ 255,016

December 31, 2019 2016 Senior Notes 2013 Senior Notes Total
Principal amount $ 110,000
$ 152,500
$ 262,500
Less: unamortized issuance costs 3,565
4,027
7,592
Carrying value $ 106,435
$ 148,473
$ 254,908

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 %


June 30, 2021	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,489			3,775			7,264
Carrying value	$	106,511		$	148,725		$	255,236

December 31, 2020	2016 Senior Notes			2013 Senior Notes			Total
Principal amount	$	110,000		$	152,500		$	262,500
Less: unamortized issuance costs	3,516			3,858			7,374
Carrying value	$	106,484		$	148,642		$	255,126

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 six months ended June 30, ~~2020~~2021 was $4,776 and $9,553, respectively ~~(2019~~(2020 - ~~$4,777~~$4,776 and $9,553, respectively), of which $1,342 was accrued at both June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, 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 six months ended June 30, ~~2020~~2021 was $56 and $110, respectively (2020 - $54 and $108, ~~respectively (2019 - $53 and $106,~~ respectively).

Under the terms of the 2013 Senior Notes,, the 2013 Senior Notes can be redeemed, in whole or in part, ~~after~~ ~~December 1, 2018~~ 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 six months ended June 30, ~~2020~~2021 and ~~2019~~2020 was as follows:

For the Six Months Ended June 30, 2020 2019
Premiums written
Direct $ 10,218
$ 9,443
Assumed 6,498
(568,465 )
Ceded (2,254 ) (2,917 )
Net $ 14,462
$ (561,939 )
Premiums earned
Direct $ 9,719
$ 8,170
Assumed 44,631
310,749
Ceded (1,827 ) (1,831 )
Net $ 52,523
$ 317,088
Loss and LAE
Gross loss and LAE $ 32,452
$ 274,543
Loss and LAE ceded (358 ) (293 )
Net $ 32,094
$ 274,250


For the Six Months Ended June 30,	2021		2020
Premiums written
Direct	$	10,531	$	10,218
Assumed	(9,487)		6,498
Ceded	(479)		(2,254)
Net	$	565	$	14,462
Premiums earned
Direct	$	11,536	$	9,719
Assumed	14,849		44,631
Ceded	(1,309)		(1,827)
Net	$	25,076	$	52,523
Loss and LAE
Gross loss and LAE	$	(5,862)	$	32,452
Loss and LAE ceded	2,894		(358)
Net	$	(2,968)	$	32,094

The Company's reinsurance recoverable on unpaid losses balance as at June 30, ~~2020~~2021 was ~~$617,496~~$565,549 (December 31, ~~2019~~2020 - ~~$623,422)~~$592,571) presented in the Condensed Consolidated Balance Sheets. At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company had 0 valuation allowance against reinsurance recoverable on unpaid losses.

~~As discussed in~~ ~~"Note 1. Organization", on~~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 ~~balance of~~ reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was ~~$58,182~~$62,541 at June 30, ~~2020~~2021 (December 31, ~~2019~~2020 - ~~$62,699)~~$67,972).

On July 31, 2019, Maiden Reinsurance and Cavello entered into ~~the LPT/~~a Loss Portfolio Transfer and Adverse Development Cover Agreement (the "LPT/ADC ~~Agreement,~~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. ~~Please see "Note 1. Basis of Presentation" for further details.~~

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 June 30, ~~2020,~~2021, the reinsurance recoverable on unpaid losses under the retroactive reinsurance agreement ~~were $556,540~~was $499,254 while the deferred gain liability was ~~$111,540~~$54,254 (December 31, ~~2019~~2020 - ~~$557,950~~$519,941 and ~~$112,950,~~$74,941, 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 2024.

Cavello ~~has~~ provided collateral in the form of a letter of credit in the amount of $445,000 to AmTrust under the LPT/ADC ~~Agreement and~~Agreement. Cavello is subject to additional collateral funding requirements as explained in "Note 10. Related Party Transactions". .As of June 30, 2021, the amount of collateral required was $430,552. 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~~& Poor's and Fitch Ratings at June 30, ~~2020.~~2021.

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

The 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). ~~The~~In cases where the Company ~~in some cases~~ uses underwriting year information, ~~to analyze the Diversified Reinsurance segment and~~reserves are subsequently ~~allocate reserves~~allocated to the respective accident ~~years.~~year. The reserve for loss and LAE consists of:

June 30, 2020 December 31, 2019
Reserve for reported loss and LAE $ 1,114,598
$ 1,271,358
Reserve for losses incurred but not reported ("IBNR") 956,624
1,168,549
Reserve for loss and LAE $ 2,071,222
$ 2,439,907


	June 30, 2021		December 31, 2020
Reserve for reported loss and LAE	$	906,833	$	998,691
Reserve for losses incurred but not reported ("IBNR")	767,757		894,608
Reserve for loss and LAE	$	1,674,590	$	1,893,299

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

For the Six Months Ended June 30, 2020 2019
Gross loss and LAE reserves, January 1 $ 2,439,907
$ 3,126,134
Less: reinsurance recoverable on unpaid losses, January 1 623,422
71,901
Net loss and LAE reserves, January 1 1,816,485
3,054,233
Net incurred losses related to:
Current year 32,687
240,978
Prior years (593 ) 33,272
32,094
274,250
Net paid losses related to:
Current year (1,832 ) (3,186 )
Prior years (387,023 ) (272,136 )
(388,855 ) (275,322 )
Effect of foreign exchange rate movements (5,998 ) (3,880 )
Net loss and LAE reserves, June 30 1,453,726
3,049,281
Reinsurance recoverable on unpaid losses, June 30 617,496
67,304
Gross loss and LAE reserves, June 30 $ 2,071,222
$ 3,116,585


For the Six Months Ended June 30,	2021		2020
Gross loss and LAE reserves, January 1	$	1,893,299	$	2,439,907
Less: reinsurance recoverable on unpaid losses, January 1	592,571		623,422
Net loss and LAE reserves, January 1	1,300,728		1,816,485
Net incurred losses related to:
Current year	15,393		32,687
Prior years	(18,361)		(593)
	(2,968)		32,094
Net paid losses related to:
Current year	8,479		(1,832)
Prior years	(206,708)		(387,023)
	(198,229)		(388,855)
Retroactive reinsurance adjustment	20,687		1,410
Effect of foreign exchange rate movements	(11,177)		(7,408)
Net loss and LAE reserves, June 30	1,109,041		1,453,726
Reinsurance recoverable on unpaid losses, June 30	565,549		617,496
Gross loss and LAE reserves, June 30	$	1,674,590	$	2,071,222

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 three and six months ended June 30, ~~2020,~~2021, the Company recognized net favorable prior year loss development of $12,807 and $18,361, respectively (2020 - favorable $60 and $593, ~~respectively (2019 - adverse $26,014 and $33,272,~~ respectively).

In the Diversified Reinsurance segment, net favorable prior year loss development was ~~adverse $362~~$951 and ~~favorable $171~~$937, respectively, for the three and six months ended June 30, ~~2020, respectively (2019~~2021 (2020 - adverse $362 and favorable ~~$1,052 and $2,148,~~$171, respectively). Prior year loss development for the three and six months ended June 30, 2021 was due to favorable reserve development in German Auto Programs, European Capital Solutions and other runoff business. The favorable development for the six months ended June 30, 2020 was primarily due to favorable reserve development in German Auto Programs partly offset by adverse development in specific German Auto Programs for the three months ended June 30, 2020. ~~The favorable loss development for the same respective periods in 2019 was largely due to favorable development in German Auto Programs and facultative reinsurance run-off lines.~~

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 (continued)

In the AmTrust Reinsurance segment, the net favorable prior year loss development was ~~$422~~$11,856 and $17,424, respectively, for the three and six months ended June 30, ~~2020, respectively (2019~~2021 (2020 - favorable $422 for both periods). The net favorable prior year loss development for the three and six months ended June 30, 2021 was primarily due to favorable development in Workers Compensation and Commercial Auto Liability partly offset by adverse ~~$27,090 and $35,216, respectively).~~development in Hospital Liability. The net favorable prior year loss development for the three and six months ended June 30, 2020 was primarily due to favorable development in Workers Compensation partly offset by adverse development within Commercial General Liability programs. ~~The net adverse development~~

Retroactive reinsurance adjustment of $20,687 represents the decrease in reinsurance recoverable on unpaid losses under the ~~three and~~LPT/ADC Agreement with Cavello that was recognized in the six months ended June 30, ~~2019 was primarily driven by Commercial Auto Liability~~2021 (2020 - $1,410) in ~~accident years 2015 to 2018, partly offset by~~the reconciliation of our beginning and ending gross and net loss and LAE reserves presented above. It reflects the corresponding decrease in the deferred gain on retroactive reinsurance for favorable development ~~in Workers Compensation.~~

~~The Other category had net favorable prior year loss development~~on reserves covered under the LPT/ADC Agreement of ~~$24 and net adverse prior year loss development of $204 for~~$20,687 during the ~~three and~~ six months ended June 30, ~~2019 due to increased reserves in~~2021. The deferred gain on retroactive reinsurance represents the ~~run-off~~cumulative adverse development under the AmTrust Quota Share covered under the LPT/ADC Agreement at June 30, 2021 and December 31, 2020. Amortization of the ~~NGHC Quota Share. This contract was commuted~~deferred gain will not occur until paid losses have exceeded the minimum retention under the LPT/ADC Agreement, which is estimated to be in ~~November 2019.~~2024.

10. Related Party Transactions

The Founding Shareholders of the Company were Michael Karfunkel, George Karfunkel and Barry Zyskind. Based on each individual's most recent public filing, Leah Karfunkel (wife of the late Michael Karfunkel) owns or controls approximately ~~7.9%~~7.8% of the Company's outstanding common shares ~~of the Company~~ and Barry Zyskind (the Company's non-executive chairman) owns or controls approximately ~~7.4%~~7.3% of the Company's outstanding ~~shares of the Company.~~common shares. George Karfunkel owns or controls less than 5.0% of the Company's outstanding ~~shares of the Company.~~common shares. Leah Karfunkel and George Karfunkel are directors of AmTrust, and Barry Zyskind is the chief executive officer and chairman of AmTrust. Leah Karfunkel, George Karfunkel and Barry Zyskind own or control approximately ~~53.4%~~53.2% of the ownership interests of Evergreen Parent LP, the ultimate parent of AmTrust.

~~AmTrust~~

The following describes transactions that have transpired between the Company and AmTrust:

AmTrust Quota Share

Effective July 1, 2007, the Company and AmTrust entered into a master agreement, as amended ("Master Agreement"), by which they caused Maiden Reinsurance and ~~AmTrust's Bermuda reinsurance subsidiary,~~ AII to enter into the AmTrust Quota Share by which AII retroceded to Maiden 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 receive a ceding commission of 31% of ceded written premiums. On June 11, 2008, Maiden Reinsurance and AII amended the 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. Effective July 1, 2018, the amount AEL ceded to Maiden Reinsurance was reduced to 20%.

Effective July 1, 2013, for the Specialty Program portion of Covered Business only, AII was responsible for ultimate net loss otherwise recoverable from Maiden Reinsurance to the extent that the loss ratio to Maiden 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 Loss Corridor, Maiden Reinsurance continued to reinsure losses at its proportional 40% share 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 ~~June 30,~~March 31, 2019. Any development above this maximum amount will be subject to the coverage of the LPT/ADC Agreement. ~~Please refer to~~ ~~Note 1. "Basis of Presentation"~~ ~~for additional information~~.

Effective January 1, 2019, Maiden Reinsurance and AII entered into ~~the~~ a partial termination amendment ("Partial Termination ~~Amendment~~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 5 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 as calculated during the second quarter of 2019.

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. ~~Please refer~~The Commuted Business excludes any business classified by AII as Specialty Program or Specialty Risk business.

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)

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 ~~Note~~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, ~~"Basis~~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 ~~Presentation" for additional information.~~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 ~~shall be~~was deemed amended as applicable so that the Commuted Business is no longer included as part of ~~the~~ 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.

~~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)~~

European Hospital Liability Quota Share

Effective April 1, 2011, Maiden Reinsurance entered into the European Hospital Liability Quota Share with AEL and AIU ~~DAC, both wholly owned subsidiaries of AmTrust.~~DAC. Pursuant to the terms of the European Hospital Liability Quota Share, Maiden 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 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 Reinsurance paid a ceding commission of 5% on contracts assumed under the European Hospital Liability Quota Share.

Effective July 1, 2016, the European Hospital Liability Quota Share was amended such that Maiden 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. ~~Subsequently,~~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.

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 six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively:

For the Three Months Ended June 30, For the Six Months Ended June 30,
2020 2019 2020 2019
Gross and net premiums written $ (4,705 ) $ (9,127 ) $ (4,705 ) $ (585,604 )
Net premiums earned 9,540
111,833
28,224
269,963
Net loss and LAE (4,970 ) (109,091 ) (19,015 ) (247,035 )
Commission expenses (3,780 ) (41,509 ) (10,774 ) (101,865 )


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Gross and net premiums written	$	(1,757)	$	(4,705)	$	(4,219)	$	(4,705)
Net premiums earned	6,350		9,540		11,874		28,224
Net loss and LAE	6,574		(4,970)		5,630		(19,015)
Commission and other acquisition expenses	(2,447)		(3,780)		(4,634)		(10,774)

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 direct reinsurer of AmTrust's insurance subsidiaries, established trust accounts ("Trust Accounts") for their benefit. Maiden Reinsurance has ~~agreed to provide~~provided appropriate collateral to secure its proportional share under the AmTrust Quota Share 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 Reinsurance to AII for deposit into the Trust Accounts, pursuant to a loan agreement between those parties, (b) assets transferred by Maiden Reinsurance for deposit into the Trust Accounts, or (c) a letter of credit obtained by Maiden Reinsurance and delivered to an AmTrust subsidiary on AII's behalf. Maiden Reinsurance may provide any or a combination of these forms of collateral, provided that the aggregate value thereof equals Maiden Reinsurance's proportionate share of its obligations under the AmTrust Quota Share. Maiden Reinsurance satisfied its collateral requirements under the AmTrust Quota Share with AII as follows:

•

•by lending funds ~~in the amount~~ of $167,975 at June 30, 2021 and December 31, 2020 ~~and December 31, 2019~~ pursuant to a loan agreement entered into between those parties. Advances under the loan are secured by promissory notes. 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 Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum. Interest ~~is payable at a rate equivalent to the Federal Funds Effective Rate ("Fed Funds") plus 200 basis points per annum. Please see~~ ~~"Note 4. (c) Investments"~~ ~~for the total amount of interest earned from this loan. The interest~~ income on the loan was $860 and $2,225 for the three and six months ended June 30, 2020, respectively (2019 - $1,842 and $3,664, respectively) and the effective yield was 2.0% and 2.6% for the same respective periods (2019 - 4.4% and 4.4%). On January 30, 2019, in connection with the termination of the reinsurance agreements described above, the Company and AmTrust entered into an amendment to the Loan Agreement between Maiden Reinsurance, AmTrust and AII, originally entered into on November 16, 2007, extending the maturity date to January 1, 2025 and acknowledges 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 June 30, 2020 was $861,978 (December 31, 2019 - $1,155,955) and the accrued interest was $3,273 (December 31, 2019 - $7,366). Please refer to ~~"Note 4. (e) Investments"~~ ~~for additional information;~~

~~on January 11, 2019, a portion of the existing trust accounts used for collateral~~ on the ~~AmTrust Quota Share were converted to a funds withheld arrangement. The Company transferred cash~~loan was $866 and ~~investments of $575,000 to AmTrust as a funds withheld receivable which initially had an annual interest rate of 3.5%, subject to annual adjustment. The annual interest rate was adjusted to 2.65%~~$1,726 for the three and six months ended June 30, ~~2020. At June 30, 2020, the balance of funds withheld was $575,000 (December 31, 2019~~2021, respectively (2020 - ~~$575,000)~~$860 and $2,225, respectively) and the ~~accrued interest~~effective yield was ~~$3,803 (December 31, 2019 - $5,073). The interest income on the funds withheld receivable was $3,806~~2.1% and ~~$7,606~~2.1% for the ~~three~~same respective periods (2020 - 2.0% and ~~six months ended June~~2.6%).

•on January 30, ~~2020, respectively (2019 - $5,017~~2019, in connection with the termination of the reinsurance agreements described above, the Company and ~~$9,443, respectively).~~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;

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)

•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 June 30, 2021 was $425,953 (December 31, 2020 - $666,879) and the accrued interest was $1,937 (December 31, 2020 - $3,048). Please refer to "Note 4. (e) Investments" for additional information;

•on January 11, 2019, a portion of the existing Trust Accounts used for collateral on the AmTrust Quota Share were converted to a funds withheld arrangement. The Company transferred $575,000 to AmTrust as a funds withheld receivable which currently has an annual interest rate of 1.8%, subject to annual adjustment. The annual interest rate was 2.65% for the duration of 2020. At June 30, 2021, the funds withheld balance was $575,000 (December 31, 2020 - $575,000) and the accrued interest was $2,580 (December 31, 2020 - $3,845). The interest income on the funds withheld receivable was $2,580 and $5,132 for the three and six months ended June 30, 2021, respectively (2020 - $3,806 and $7,606, respectively).

Pursuant to the terms of the LPT/ADC Agreement, Maiden Reinsurance, Cavello and AmTrust and certain of 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 funding percentage to 110%.

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 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 the terms of 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 AIU DAC by increasing the required funding percentage for Maiden Reinsurance under the collateral arrangements between the parties to the greater of 120% of the Exposure (as defined therein) and 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 provided collateral equivalent to 100% of the Exposure.

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 June 30, ~~2020~~2021 was ~~$219,170~~$334,038 (December 31, ~~2019~~2020 - ~~$253,631)~~$318,063) and the accrued interest was ~~$1,764~~$2,227 (December 31, ~~2019~~2020 - ~~$1,821)~~$2,283). For AIU DAC, the Company utilizes funds withheld to satisfy its collateral requirements. At June 30, ~~2020,~~2021, the amount of funds withheld was ~~$93,188~~$29,424 (December 31, ~~2019~~2020 - ~~$57,305)~~$28,093) and the accrued interest was ~~$200~~$73 (December 31, ~~2019~~2020 - ~~$269)~~$318). AIU DAC pays Maiden Reinsurance a fixed annual interest rate of 0.5%, on the average daily funds withheld balance which is subject to annual ~~adjustment.The~~adjustment. The interest income on the funds withheld receivable was ~~$127~~$37 and ~~$198~~$74 for the three and six months ended June 30, ~~2020, respectively (2019~~2021 (2020 - ~~$72~~$127 and ~~$125,~~$198, respectively).

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)

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 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 recorded ~~$119~~$79 and ~~$353~~$148 of reinsurance brokerage expense for the three and six months ended June 30, ~~2020,~~2021, respectively ~~(2019~~(2020 - ~~$1,398~~$119 and ~~$3,375,~~$353, respectively) and deferred reinsurance brokerage of ~~$1,961~~$1,333 at June 30, ~~2020~~2021 (December 31, ~~2019~~2020 - ~~$2,372)~~$1,534) 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 agreed to provide investment management services to the Company. Effective January 1, 2018, AIIM provides investment management services for a quarterly fee of 0.02125% of the average value of the account. The agreement may be terminated upon 30 days written notice by either party. The Company recorded ~~$350~~$222 and ~~$750~~$494 of investment management fees for the three and six months ended June 30, ~~2020,~~2021, respectively ~~(2019~~(2020 - ~~$678~~$350 and ~~$1,453,~~$750, respectively) under this agreement.

~~MAIDEN HOLDINGS, LTD.~~On September 9, 2020, Maiden Reinsurance, AmTrust and AIIM entered into a novation agreement, effective July 1, 2020, which provided for the novation of 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 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.

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

(On November 13, 2020, Maiden LF, Maiden GF, AmTrust and AIIM entered into a novation agreement, effective July 1, 2020, which provided for the novation of the 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 terms of the asset management agreement in ~~thousands~~place of ~~U.S. dollars, except share~~AIIM and ~~per share data)~~

~~10. Related Party Transactions (continued)~~AmTrust agrees to perform any and all past, present and future obligations of AIIM under the asset management agreement.

Insurance Management Services Agreement

Effective August 31, 2019, the Company entered into an agreement with Risk Services - Vermont, Inc. ("Risk Services"), an affiliate of AmTrust. Pursuant to the agreement, Risk Services agreed to provide insurance management services to the Company including regulatory compliance services in connection with the re-domestication, licensing and operation of Maiden Reinsurance in the State of Vermont. The initial term of the agreement is three years and will automatically renew for an additional three years until either party gives written notice of its intention to terminate this agreement at least three months prior to the commencement of the next applicable period.

The fee for this agreement was an initial $100 retainer for re-domestication services paid in 2019 and $100 annually ~~and~~with reimbursement for reasonable out-of-pocket expenses incurred by Risk Services pursuant to the terms of the agreement. The Company recorded $25 and $50 of fees for the three and six months ended June 30, 2021 and 2020, respectively.

683 Capital Partners, LP (“683 Partners”)

At June 30, 2021, 683 Partners and its affiliates ~~currently~~ own or control approximately ~~9.2%~~6.8% of the outstanding common shares of the ~~Company and is thus deemed a related party at June 30, 2020.~~Company. 683 Partners and its affiliates ~~also reported that they own Preference Shares of the Company and Senior Notes issued by both Maiden Holdings and Maiden NA.~~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 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 subject to certain metrics agreed to by the 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 $33,058 were managed by 683 Capital under this agreement at June 30, 2021.

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 ~~Contingencies~~Guarantees

There are no material changes from the commitments, contingencies and concentrations previously disclosed in the Company’s Form 10-K for the year ended December 31, ~~2019.~~2020 except for the guarantees related to the indebtedness of others as disclosed in Note 11 (b) below.


a)	~~Concentrations of Credit Risk~~

a)Concentrations of Credit Risk

At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company’s assets where significant concentrations of credit risk may exist include investments, cash and cash equivalents, loan to related party, ~~reinsurance balances receivable,~~ reinsurance recoverable on 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 LPT/ADC Agreement effective January 1, 2019. 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. Letters of credit are provided by its reinsurers for material amounts recoverable as discussed ~~further~~ in "Note 8 — Reinsurance".

The Company manages the concentration of credit risk in 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 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 June 30, ~~2020.~~2021. To mitigate credit risk, the Company generally has a contractual right of offset thereby allowing claims to be settled net of any premiums or loan receivable. The Company believes these balances as at June 30, ~~2020~~2021 will be fully collectible.


b)	~~Operating Lease Commitments~~

b)Other Commitments and Financial Guarantees

The Company has remaining unfunded commitments on its other investments of $66,351 at June 30, 2021 (2020 - $63,313). Please refer to "Note 4 (b) - Investments" for further details on unfunded commitments at June 30, 2021.

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.

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 June 30, 2021, guarantees of $8,545 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.

c)Operating Lease Commitments

The Company leases office spaces, housing, office equipment and company vehicles under various operating leases expiring in various years through ~~2022.~~2024. The Company ~~did not enter into any new lease~~terminated one of its office leasing arrangements and its subleasing arrangement during the three and six months ended June 30, ~~2020~~.2021. The Company's leases are ~~all~~ currently classified as operating leases and none of them have non-lease components. For operating leases that have aan initial lease term of more than twelve months, and whose lease payments are above a certain threshold, the Company ~~recognized~~recognizes a lease liability and a right-of-use asset in the ~~Company's~~ 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. The exercise of lease renewal options is at the sole discretion of the Company and none of our current lease renewal options are deemed to be reasonably certain to be exercised. The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company's weighted-average remaining lease term is 2.3 years.

At June 30, 2020, the Company's future lease obligations of $1,775 (December 31, 2019 - $2,342) was calculated based on the present value of future annual rental commitments excluding taxes, insurance and other operating costs for non-cancellable operating leases discounted using its secured incremental borrowing rate. This amount ~~has been recognized on the Condensed Consolidated Balance Sheets~~is recorded as a lease liability ~~of $1,775~~ within accrued expenses and other liabilities with an equivalent amount for the right-of-use asset presented as part of other ~~assets. Under~~ ~~Topic 842, Leases, the Company continues to recognize the related leasing expense on a straight-line basis over the~~assets and is deemed insignificant at June 30, 2021. The Company's weighted-average remaining lease term ~~in the Condensed Consolidated Statements of Income.~~

~~MAIDEN HOLDINGS, LTD.~~

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

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

~~11. Commitments and Contingencies (continued)~~

~~The Company's total lease expense for the three and six months ended~~is approximately 3.0 years at June 30, ~~2020 was $449 and $859, respectively (2019 - $389 and $810, respectively) which was recognized within net income consistent with the accounting treatment in prior periods under~~ 2021.

d)~~Topic 840~~. The operating cash outflows from operating leases included in the measurement of the lease liability during the three and six months ended June 30, 2020 was $340 and $680, respectively (2019 - $340 and $681, respectively).Legal Proceedings

~~The scheduled maturity of the Company's operating lease liabilities are expected to be as follows:~~

June 30, 2020
2020 $ 500
2021 741
2022 741
Discount for present value (207 )
Total discounted operating lease liabilities $ 1,775


c)	~~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, 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 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 in violation of the whistle-blower protection provisions of the Sarbanes-Oxley Act of 2002. 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 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

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)

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 and concluded in November 2018. 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. ~~The Company believes~~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 ~~intends~~we intend to vigorously defend ~~itself.~~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.

~~MAIDEN HOLDINGS, LTD.~~

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

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

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 June 30,				For the Six Months Ended June 30,
	2021		2020		2021		2020
Numerator:


Net income	$	8,112	$	9,212	$	17,398	$	30,073

Gain from repurchase of preference shares - Series A, C and D	18,714		0		81,164		0
Amount allocated to participating common shareholders(1)	(198)		(168)		(1,139)		(390)




Net income allocated to Maiden common shareholders	$	26,628	$	9,044	$	97,423	$	29,683
Denominator:
Weighted average number of common shares – basic	86,230,021		84,537,385		85,684,511		83,896,804
Potentially dilutive securities:
Share options and restricted share units(2)	5,351		0		4,382		0
Adjusted weighted average number of common shares – diluted(2)	86,235,372		84,537,385		85,688,893		83,896,804
Basic and diluted earnings per share attributable to common shareholders	$	0.31	$	0.11	$	1.14	$	0.35

For the Three Months Ended June 30, For the Six Months Ended June 30,
2020 2019 2020 2019
Numerator:
Net income (loss) from continuing operations $ 9,212
$ 3,976
$ 30,073
$ (29,926 )
Amount allocated to participating common shareholders⁽¹⁾
(168 ) —
(390 ) —
Income (loss) attributable to common shareholders, before discontinued operations 9,044
3,976
29,683
(29,926 )
Loss from discontinued operations, net of income tax —
(19,389 ) —
(22,123 )
Net income (loss) allocated to common shareholders $ 9,044

$ (15,413 ) $ 29,683
$ (52,049 )
Denominator:
Weighted average number of common shares – basic⁽²⁾
84,537,385
83,058,123
83,896,804
83,008,888
Share options and restricted share units —
17,033
—
—
Adjusted weighted average number of common shares – diluted 84,537,385
83,075,156
83,896,804
83,008,888
Basic and diluted earnings (loss) from continuing operations per share attributable to common shareholders $ 0.11
$ 0.04
$ 0.35
$ (0.36 )
Basic and diluted loss from discontinued operations per share attributable to common shareholders —
(0.23 ) —
(0.27 )
Basic and diluted earnings (loss) per share attributable to common shareholders: $ 0.11
$ (0.19 ) $ 0.35
$ (0.63 )
(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.


~~(1)~~	~~This represents the share~~(2)Please refer to "Note 13. Shareholders' Equity" and "Note 14. Share Compensation and Pension Plans" in ~~net income using the two class method of the holders of non-vested restricted shares issued to the Company's employees under the 2019 Omnibus Incentive Plan.~~

~~(2)~~

~~Please refer to~~ ~~"Note 13. Shareholders' Equity"~~ ~~and~~ ~~"Note 14. Share Compensation and Pension Plans"~~ of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, for the terms and conditions of securities that could potentially be dilutive in the future. For the three and six months ended June 30, 2020, there were 0 potentially dilutive securities.

~~13. Shareholders' Equity~~


a)	~~Common Shares~~

At June 30, 2020, the aggregate authorized share capital of the Company is 150,000,000 shares from which the Company has issued 89,732,851 common shares, of which 84,718,837 common shares are outstanding, and 18,600,000 preference shares, all of which are outstanding. The remaining 41,667,149 shares are undesignated at June 30, 2020. 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, ~~2019.~~


b)	~~Treasury Shares~~

~~During~~2020 for the ~~six months ended June 30, 2020,~~terms and conditions of securities that could potentially be dilutive in the Company repurchased total shares of 834 (2019 - 23,220) at an average price per share of $1.13 (2019 - $0.78) from employees, which represent withholdings in respect of tax obligations on the vesting of restricted shares and performance based shares.

~~The Company has a remaining authorization of $74,245 for share repurchases at June 30, 2020 (December 31, 2019 - $74,245). NaN repurchases were made during~~future. For the three and six months ended June 30, ~~2020~~2021, there were 5,351 and ~~2019 under the share repurchase plan.~~4,382 potentially dilutive securities, respectively.

MAIDEN HOLDINGS, LTD.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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

13. Income Taxes

~~13. Shareholders' Equity (continued)~~


c)	~~Accumulated Other Comprehensive Income (Loss)~~

The ~~following tables set forth financial information regarding~~Company uses the estimated annual effective tax rate method. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the ~~balances~~realizability of ~~each component~~deferred tax assets "(DTAs") and uncertain tax positions.

Maiden NA files a consolidated federal income tax return for the Company’s U.S. based subsidiaries, including Maiden Reinsurance, which re-domesticated from Bermuda to Vermont on March 16, 2020 and, as a result, became subject to U.S. taxes. Maiden NA has net operating loss carry-forwards and other DTAs and deferred tax liabilities that are not presently recognized as a net DTA because a full valuation allowance is currently carried against them.

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief and Economic Security Act (the “CARES” Act) to mitigate the economic impacts of ~~AOCI:~~COVID-19. The Company believes that the provisions of the CARES Act will not have a material impact on its U.S. federal tax liabilities.

For the Three Months Ended June 30, 2020 Change in net unrealized gains on investment Foreign currency translation Total
Beginning balance $ (22,125 ) $ (4,163 ) $ (26,288 )
Other comprehensive income (loss) before reclassifications 41,677
(3,820 ) 37,857
Amounts reclassified from AOCI to net income, net of tax (2,368 ) —
(2,368 )
Net current period other comprehensive income (loss) 39,309
(3,820 ) 35,489
Ending balance, Maiden shareholders $ 17,184
$ (7,983 ) $ 9,201

For the Three Months Ended June 30, 2019 Change in net unrealized gains on investment Foreign currency translation Total
Beginning balance $ 1,714
$ (1,934 ) $ (220 )
Other comprehensive income (loss) before reclassifications 42,979
(6,192 ) 36,787
Amounts reclassified from AOCI to net loss, net of tax (15,415 ) —
(15,415 )
Net current period other comprehensive income (loss) 27,564
(6,192 ) 21,372
Ending balance, Maiden shareholders $ 29,278
$ (8,126 ) $ 21,152

For the Six Months Ended June 30, 2020 Change in net unrealized gains on investment Foreign currency translation Total
Beginning balance $ 21,996
$ (4,160 ) $ 17,836
Other comprehensive income (loss) before reclassifications 1,589
(3,823 ) (2,234 )
Amounts reclassified from AOCI to net income, net of tax (6,401 ) —
(6,401 )
Net current period other comprehensive loss (4,812 ) (3,823 ) (8,635 )
Ending balance, Maiden shareholders $ 17,184
$ (7,983 ) $ 9,201

For the Six Months Ended June 30, 2019 Change in net unrealized gains on investment Foreign currency translation Total
Beginning balance $ (59,762 ) $ (5,932 ) $ (65,694 )
Other comprehensive income (loss) before reclassifications 91,967
(2,194 ) 89,773
Amounts reclassified from AOCI to net loss, net of tax (2,927 ) —
(2,927 )
Net current period other comprehensive income (loss) 89,040
(2,194 ) 86,846
Ending balance, Maiden shareholders $ 29,278
$ (8,126 ) $ 21,152

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" 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 ~~2019~~2020 to conform to the ~~2020~~2021 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 filed with the U.S. Securities and Exchange Commission ("SEC") on March ~~18, 2020,~~15, 2021, 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

Maiden Holdings is a Bermuda-based holding company, previously focused on serving the needs of regional and specialty insurers in the United States ("U.S."), Europe and select other global markets. As a result of a series of actions we have taken in recent years discussed below under Recent Developments, we create shareholder value by actively managing and allocating our assets and capital, including through ownership and management of businesses and assets mostly in the insurance and related financial services industries where we can leverage our deep knowledge of those markets. We ~~operate~~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 including acquiring entire companies. We expect our legacy solutions business to contribute to our active asset and capital management strategies.

Short-term income protection business is written on a primary basis by our wholly owned subsidiaries Maiden Life Försäkrings AB ("Maiden LF") and Maiden General Försäkrings AB ("Maiden GF") in the Scandinavian and 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") which is also a licensed intermediary in the United Kingdom. Maiden Global had previously operated internationally by providing branded auto and credit life insurance products through insurer partners, ~~to retail clients~~particularly those in ~~the EU~~Europe and other global ~~markets through Maiden Global Holdings, Ltd. ("Maiden Global").~~markets. These products also ~~produce~~produced reinsurance programs which ~~are~~were underwritten by our wholly owned subsidiary Maiden Reinsurance Ltd. ("Maiden Reinsurance"). ~~Certain international credit life~~

We are not actively underwriting reinsurance business ~~is written on a primary basis~~presently but have some historic reinsurance programs underwritten by Maiden ~~Life Försäkrings AB ("Maiden LF") and general insurance business is written on a primary basis by Maiden General Försäkrings AB ("Maiden GF").~~Reinsurance which are in run-off. We ~~are also running off~~continue to run-off the underwriting liabilities ~~associated~~related to our contracts with AmTrust Financial Services, Inc. ("AmTrust") ~~contracts~~which we terminated in ~~early 2019 as discussed below. In addition, we are not actively underwriting reinsurance business.~~2019. We also have ~~also entered into~~ a ~~retroactive reinsurance agreement~~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, ~~which are~~as discussed in "Note 8. Reinsurance"~~Note 1. Basis of Presentation"~~ of the Notes to Condensed Consolidated Financial Statements included in Part I Item 1. ~~"Financial~~"Financial Information".

As discussed in ~~"Note 1. Basis of Presentation"~~ ~~of the~~ ~~Notes to Condensed Consolidated Financial Statements~~ ~~included in~~ ~~Part I~~ Item 1. ~~"Financial Information"~~ "~~and in~~Business ~~Item 1. "Business"~~ " of our Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 filed with the SEC on March ~~18, 2020,~~15, 2021, the sale of Maiden Reinsurance North America, Inc. ("Maiden US") and the termination of both of our quota share contracts with AmTrust ~~have~~ materially reduced our gross and net premiums written since 2018. We have significantly reduced our operating expenses and continue to take steps to reduce these costs further.

We expect to continue to re–evaluate our operating strategy during 2020 while leveraging the significant assets and capital we retain. In addition to restoring operating profitability, our strategic focus will center on creating the greatest risk-adjusted shareholder returns, whether via asset and capital management or active reinsurance underwriting, or a combination of both. Our present assessment of the reinsurance marketplace along with our current operating profile is that the risk-adjusted returns that may be produced via active reinsurance underwriting are likely to present more limited opportunities compared to other strategic initiatives which may produce greater shareholder value.

Our business currently consists of two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. ~~As a result of the strategic decision to divest all of our U.S. treaty reinsurance operations in 2018, we revised the composition of our reportable segments in the fourth quarter of 2018.~~ Our Diversified Reinsurance segment ~~now only~~ consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe. Our AmTrust Reinsurance segment includes ~~the run-off of~~ all business ceded ~~by AmTrust~~ to Maiden Reinsurance by AmTrust, 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"), which are both in run-off effective January 1, 2019.

Recent Developments

Effective March 16, 2020, we re-domesticated our principal operating subsidiary, Maiden Reinsurance, to the State of Vermont in the United States. Maiden Reinsurance is now subject to the statutes and regulations of Vermont in the ordinary course of business. We have determined that re-domesticating Maiden Reinsurance to Vermont enables us to better align our capital and resources with our liabilities, which originate mostly in the United States, resulting in a more efficient structure.The re-domestication, in combination with the transactions completed pursuant to the Strategic Review, will continue to strengthen the Company’s capital position and solvency ratios. While the Vermont Department of Financial Regulation ("Vermont DFR") will be the group supervisor for the Company, the re-domestication did not apply to the parent holding company which remains a Bermuda-based holding company. Securities issued by Maiden Holdings were not affected by the re-domestication of Maiden Reinsurance to Vermont.

Concurrent with its re-domestication to Vermont on March 16, 2020, Maiden Holdings contributed as capital the remaining 65% of its ownership in Maiden Reinsurance to Maiden Holdings North America, Ltd. ("Maiden NA"). Maiden NA now owns 100% of Maiden Reinsurance. Maiden NA also maintains a portfolio of cash and fixed maturity investments, along with other strategic investments of $48.8 million at June 30, 2020. We believe Maiden NA’s investments, including its ownership of Maiden Reinsurance, will create opportunities to utilize net operating loss carry-forwards ("NOLs") which total $213.3 million as of June 30, 2020. These NOLs are not presently recognized as deferred tax assets as a full valuation allowance is currently carried against them. For further details please see ~~Note 16 — Taxation~~ ~~included under~~ ~~Item 8 "Financial Statements and Supplementary Data"~~ in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 18, 2020. Taken together, the Company believes 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 part of the Strategic Review.

~~In addition to these changes regarding Maiden Reinsurance, since~~Since the third quarter of 2018, we have engaged in a series of ~~strategic measures~~transactions that ~~have~~ dramatically reduced the regulatory capital required to operate our business, materially strengthened our solvency ratios, and ceased active reinsurance underwriting. During that time, we significantly increased our estimate of ultimate ~~losses~~loss and loss expense reserves while purchasing reinsurance protection against further loss reserve volatility and as a result, have improved the ultimate economic value of the Company.

We believe these measures have given the Company the ability to more flexibly allocate capital to those activities most likely to produce the greatest returns for shareholders, and the Company is actively engaged in evaluating opportunities, both individually and in the aggregate that it believes will accomplish that goal.

The measures we have taken were initiated in ~~early~~ 2018, when our Board of Directors initiated a review of strategic alternatives ("Strategic Review") to evaluate ways to increase shareholder value after a period of continuing higher than targeted combined ratios and lower returns on equity than expected. This Strategic Review resulted in a series of transactions that ~~have~~ transformed our operations and materially reduced the risk on our balance sheet. These transactions can be found in Part II of our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

2020 that was filed with the SEC on March 15, 2021.

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, ~~2019~~2020 for further information.

Effective March 16, 2020, we re-domesticated our principal operating subsidiary, Maiden Reinsurance, from Bermuda to the State of Vermont in the U.S., having determined that re-domesticating Maiden Reinsurance to Vermont enables us to better align our capital and resources with our liabilities, which originate mostly in the United States, resulting in a more efficient structure. Maiden Reinsurance is now subject to the statutes and regulations of Vermont in the ordinary course of business. The re-domestication, in combination with other strategic measures described above that were completed in 2019, will continue to strengthen the Company’s capital position and solvency ratios.

While the Vermont Department of Financial Regulation ("Vermont DFR") is currently the group supervisor for the Company, the re-domestication did not apply to the parent holding company which remains a Bermuda-based holding company. Securities issued by Maiden Holdings were not affected by the re-domestication of Maiden Reinsurance to Vermont. Concurrent with the re-domestication, Maiden Holdings contributed as capital the remaining 65% of its ownership in Maiden Reinsurance to our wholly owned subsidiary Maiden Holdings North America, Ltd. ("Maiden NA"). Maiden NA now owns 100% of Maiden Reinsurance in the aggregate.

Maiden NA also maintains a portfolio of cash and fixed maturity investments, along with other strategic investments, of $25.1 million at June 30, 2021. We believe Maiden NA’s investments, including its ownership of Maiden Reinsurance and its active asset management strategy, will create opportunities to utilize net operating loss carry-forwards ("NOLs") which were

$209.6 millionas of June 30, 2021. These NOLs, in combination with additional net deferred tax assets ("DTAs") of primarily related to our insurance liabilities, result in a net DTA (before valuation allowance) of $84.6 million or $0.98 per common share as of June 30, 2021. These net DTAs are not presently recognized on the Company's consolidated balance sheet as a full valuation allowance is currently carried against them. For further details, please see "Note 16. Taxation" included under Item 8 "Financial Statements and Supplementary Data" in our Annual Report on Form 10-K for the year ended December 31, 2020. 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 part of the Strategic Review.

Business Strategy

We continue to re–evaluate our operating strategy during 2021 while leveraging 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, whether via asset and capital management or active reinsurance underwriting, or a combination of both. Our present assessment of the reinsurance marketplace along with our current operating profile is that the risk-adjusted returns that may be produced via active reinsurance underwriting of new risks are likely to present more limited opportunities compared to other strategic initiatives which may produce greater shareholder value. As a result, our strategic focus has shifted to activities which utilize our unrestricted cash and investments to manage our capital and where prudent, enhance our investment return by investing in asset classes which we believe will produce appropriate returns. By enhancing our profitability through increased investment returns, we believe we also increase the likelihood of fully utilizing the significant NOLs described above which may create additional shareholder value.

The measures implemented now enable 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 both pillars of these strategies as discussed herein. 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.

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 have increased 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 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 to consider these capital management initiatives, although we are careful to approach these strategies in a deliberate fashion.

In November 2020, we formed Genesis Legacy Solutions (“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. We believe the formation of GLS is highly complementary to our overall longer-term strategy. GLS, along with other recent insurance industry investments, enables us to leverage our knowledge base while not re-entering active underwriting of new 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. This should further enhance our ability to pursue the asset and capital management pillars of our business strategy.

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.

COVID-19 Pandemic

The continuing COVID-19 global pandemic has caused significant disruption to the economy and financial markets globally, and the full extent of the potential impacts of COVID-19 are not yet known. Circumstances caused by the COVID-19 pandemic are complex, uncertain and rapidly evolving. Our results of operations, financial condition, and liquidity and capital resources have been adversely impacted by the COVID-19 pandemic, and the future impact of the pandemic on our financial condition or results of operations is difficult to predict.

As described herein, ~~the Company is~~we are not currently engaged in active reinsurance underwriting and ~~is running~~continue to run off the remaining unearned exposures ~~it has~~we have reinsured. ~~Maiden Global’s business development teams partner with automobile manufacturers, dealer associations~~Our Swedish and ~~local primary insurers to design and implement point of sale~~UK insurance ~~programs which generate revenue for the auto manufacturer and insurance premiums for the primary insurer~~operations ("IIS unit")~~. Our IIS unit does~~ do write limited primary insurance ~~coverages~~coverage that could be exposed to COVID-19 claims. While we assess our exposure to COVID-19 insurance and reinsurance claims on our existing insurance exposures and remaining reinsurance exposures as limited and immaterial, given the uncertainty surrounding the COVID-19 pandemic and its impact on the insurance industry, our preliminary estimates of loss and loss adjustment expenses ("loss and LAE") and estimates of reinsurance recoverable arising from the COVID-19 pandemic may materially change. Maiden Reinsurance has not received any COVID-19 claims to date but ~~our~~ companies within our IIS unit have received a limited number of claims related to those coverages which it deems as immaterial. Unanticipated issues relating to claims and coverage may emerge, which could adversely affect our business by increasing the scope of coverage beyond our intent and/or increasing the frequency and severity of claims.

The Company's investment portfolio may be adversely impacted by unfavorable market conditions caused by the COVID-19 pandemic and we and our reinsurance 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. In addition, the Company 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 our liquidity.

Please refer to the "Liquidity and Capital ~~Resources~~Resources" section for a further discussion of the impact of the COVID-19 pandemic on our liquidity and investment portfolio.

Three and Six Months Ended June 30, ~~2020~~2021 and ~~2019~~2020 Financial Highlights


For the Three Months Ended June 30,	2021			2020			Change
Summary Consolidated Statement of Income Data (unaudited):	($ in thousands except per share data)


Net income	$	8,112		$	9,212		$	(1,100)
Gain from repurchase of preference shares	18,714			—			18,714
Net income attributable to Maiden common shareholders	26,826			9,212			17,614
Basic and diluted earnings per common share:
Net income attributable to common shareholders(2)	0.31			0.11			0.20
Gain from repurchase of preferred securities per common share	0.22			—			0.22
Gross premiums written	3,434			4,982			(1,548)
Net premiums earned	13,312			21,308			(7,996)
Underwriting income (loss)(3)	8,471			(17)			8,488
Net investment income	7,278			14,309			(7,031)
Combined ratio(4)	75.6		%	131.8		%	(56.2)
Non-GAAP measures:
Non-GAAP operating earnings(1)	$	13,948		$	1,222		$	12,726
Non-GAAP basic and diluted operating earnings per common share(1)	0.16			0.01			0.15
Annualized non-GAAP operating return on average common shareholders' equity(1)	20.7		%	3.2		%	17.5

For the Six Months Ended June 30,	2021			2020			Change
Summary Consolidated Statement of Income Data (unaudited):	($ in thousands except per share data)


Net income	$	17,398		$	30,073		$	(12,675)
Gain from repurchase of preference shares	81,164			—			81,164
Net income attributable to Maiden common shareholders	98,562			30,073			68,489



Basic and diluted earnings per common share:
Net income attributable to Maiden common shareholders(2)	1.14			0.35			0.79
Gain from repurchase of preferred shares per common share	0.95			—			0.95
Gross premiums written	1,044			16,716			(15,672)
Net premiums earned	25,076			52,523			(27,447)
Underwriting income (loss)(3)	10,026			(3,710)			13,736
Net investment income	17,119			32,273			(15,154)
Combined ratio(4)	126.6		%	131.7		%	(5.1)
Non-GAAP measures:
Non-GAAP operating earnings(1)	$	61,249		$	4,354		$	56,895
Non-GAAP basic and diluted operating earnings per common share(1)	0.71			0.05			0.66

Annualized non-GAAP operating return on average common shareholders' equity(1)	50.9		%	5.3		%	45.6

For the Three Months Ended June 30, 2020 2019 Change
Summary Consolidated Statement of Income Data (unaudited): ($ in thousands except per share data)
Net income from continuing operations $ 9,212
$ 3,976
$ 5,236
Loss from discontinued operations, net of income tax —
(19,389 ) 19,389
Net income (loss) 9,212
(15,413 ) 24,625
Basic and diluted earnings (loss) per common share⁽⁹⁾:

Net income (loss) attributable to common shareholders⁽²⁾⁽⁹⁾
0.11
(0.19 ) 0.30
Gross premiums written 4,982
2,117
2,865
Net premiums earned 21,308
133,986
(112,678 )
Underwriting loss⁽³⁾
(17 ) (39,131 ) 39,114
Net investment income 14,309
31,122
(16,813 )
Combined ratio⁽⁴⁾
131.8 % 136.1 % (4.3 )
Non-GAAP measures:
Non-GAAP operating earnings (loss)⁽¹⁾
$ 1,222
$ (21,341 ) $ 22,563
Non-GAAP operating earnings (loss) per share - attributable to common shareholders⁽¹⁾⁽⁹⁾
0.01
(0.26 ) 0.27
Annualized non-GAAP operating return on average common shareholders' equity⁽¹⁾
11.5 % (69.9 )% 81.4

For the Six Months Ended June 30, 2020 2019 Change
Summary Consolidated Statement of Income Data (unaudited): ($ in thousands except per share data)
Net income (loss) from continuing operations $ 30,073
$ (29,926 ) $ 59,999
Loss from discontinued operations, net of income tax —
(22,123 ) 22,123
Net income (loss) 30,073
(52,049 ) 82,122
Basic and diluted earnings (loss) per common share⁽⁹⁾:

Net income (loss) attributable to Maiden common shareholders⁽²⁾⁽⁹⁾
0.35
(0.63 ) 0.98
Gross premiums written 16,716
(559,022 ) 575,738
Net premiums earned 52,523
317,088
(264,565 )
Underwriting loss⁽³⁾
(3,710 ) (81,820 ) 78,110
Net investment income 32,273
63,144
(30,871 )
Combined ratio⁽⁴⁾
131.7 % 132.5 % (0.8 )
Non-GAAP measures:
Non-GAAP operating earnings (loss)⁽¹⁾
$ 4,354
$ (48,893 ) $ 53,247
Non-GAAP operating earnings (loss) attributable to Maiden common shareholders⁽¹⁾⁽⁹⁾
0.05
(0.59 ) 0.64
Annualized non-GAAP operating return on average common shareholders' equity⁽¹⁾
16.1 % (91.8 )% 107.9


	June 30, 2021			December 31, 2020			Change
Consolidated Financial Condition	($ in thousands except per share data)
Total investments and cash and cash equivalents(5)	$	1,165,698		$	1,456,133		$	(290,435)
Total assets	2,606,770			2,948,455			(341,685)
Reserve for loss and LAE	1,674,590			1,893,299			(218,709)
Senior notes - principal amount	262,500			262,500			—
Common shareholders' equity	222,828			133,506			89,322
Shareholders' equity	404,212			527,816			(123,604)
Total capital resources(6)	666,712			790,316			(123,604)
Ratio of debt to total capital resources(11)	39.4		%	33.2		%	6.2
Book Value calculations:
Book value per common share(7)	$	2.58		$	1.57		$	1.01
Accumulated dividends per common share	4.27			4.27			—
Book value per common share plus accumulated dividends	$	6.85		$	5.84		$	1.01
Change in book value per common share plus accumulated dividends	17.3		%
Diluted book value per common share(8)	$	2.56		$	1.55		$	1.01

Non-GAAP measures:
Adjusted book value per common share(9)	$	3.21		$	2.46		$	0.75
Adjusted Maiden shareholders' equity(10)	458,466			602,757			(144,291)
Adjusted total capital resources(10)	720,966			865,257			(144,291)
Ratio of debt to adjusted total capital resources(12)	36.4		%	30.3		%	6.1

(1)Non-GAAP operating earnings, non-GAAP operating earnings per common share, and annualized non-GAAP operating return on average common equity and underwriting income (loss) 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 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)Combined ratio is 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 shareholders' equity. See "Key Financial Measures" for additional information.

(7)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.

(8)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.

(9)Adjusted book value per common share is a non-GAAP measure that is calculated using common shareholders' equity, adjusted for the estimated unamortized deferred gain on retroactive reinsurance, divided by the number of common shares outstanding. See "Key Financial Measures" for additional information.

(10)Adjusted shareholders' equity and adjusted total capital resources are calculated by adding the unamortized deferred gain on retroactive reinsurance to the GAAP shareholders' equity and GAAP total capital resources, respectively. 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. total principal amount of debt divided by the sum of adjusted total capital resources.

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

(12)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.

June 30, 2020 December 31, 2019 Change
Consolidated Financial Condition ($ in thousands except per share data)
Total investments and cash and cash equivalents⁽⁵⁾
$ 1,613,070
$ 1,974,544
$ (361,474 )
Total assets 3,213,436
3,568,196
(354,760 )
Reserve for loss and LAE 2,071,222
2,439,907
(368,685 )
Senior notes - principal amount 262,500
262,500
—
Common shareholders' equity 65,739
42,718
23,021
Shareholders' equity 530,739
507,718
23,021
Total capital resources⁽⁶⁾
793,239
770,218
23,021
Ratio of debt to total capital resources⁽¹²⁾
33.1 % 34.1 % (1.0 )
Book Value calculations:
Book value per common share⁽⁷⁾
$ 0.78
$ 0.51
$ 0.27
Accumulated dividends per common share 4.27
4.27
—
Book value per common share plus accumulated dividends $ 5.05
$ 4.78
$ 0.27
Change in book value per common share plus accumulated dividends 5.6 %
Diluted book value per common share⁽⁸⁾
$ 0.76
$ 0.50
$ 0.26

Non-GAAP measures:
Adjusted book value per common share⁽¹⁰⁾
$ 2.09
$ 1.87
$ 0.22
Adjusted Maiden shareholders' equity⁽¹¹⁾
642,279
620,668
21,611
Adjusted total capital resources⁽¹¹⁾
904,779
883,168
21,611
Ratio of debt to adjusted total capital resources⁽¹³⁾
29.0 % 29.7 % (0.7 )


~~(1)~~	Non-GAAP operating earnings (loss), non-GAAP operating earnings (loss) per common share, and annualized non-GAAP operating return on average common equity and underwriting loss 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 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)~~	~~Combined ratio is 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 shareholders' equity. See "Key Financial Measures" for additional information.~~


~~(7)~~	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.~~


~~(8)~~	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.~~


~~(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.


~~(10)~~	Adjusted book value per common share is a non-GAAP measure that is calculated using common shareholders' equity, adjusted for the estimated unamortized deferred gain on retroactive reinsurance, divided by the number of common shares outstanding. See "~~Key Financial Measures" for additional information.~~

~~(11)~~

Adjusted shareholders' equity and adjusted total capital resources are calculated by adding the estimated unamortized deferred gain on retroactive reinsurance to the GAAP shareholders' equity and GAAP total capital resources, respectively. 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.~~


~~(12)~~	~~Ratio of debt to total capital resources is calculated using the total principal amount of debt divided by the sum of total capital resources.~~


~~(13)~~	~~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.~~

Key Financial Measures

In addition to the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Comprehensive Income, management uses certain key financial measures, some of which are non-GAAP measures, to evaluate 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 business. The non-GAAP measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. The calculation of some 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"~~on page 60.~~. These key financial measures are:

Non-GAAP operating earnings ~~(loss)~~ and non-GAAP diluted operating earnings ~~(loss)~~ per common share: Management believes that the use of non-GAAP operating earnings ~~(loss)~~ and non-GAAP diluted operating earnings ~~(loss)~~ 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 therefore 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 ~~(loss)~~ should not be viewed as a substitute for U.S. GAAP net ~~income (loss).~~income.

Non-GAAP operating earnings ~~(loss)~~ is an internal performance measure used by management as these measures focus on the underlying fundamentals of the Company's operations by excluding, on a recurring basis: (1) net realized gains or losses on investment; (2) total other-than-temporary impairment ("OTTI") losses; (3) foreign exchange and other gains or losses; and (4) the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain ~~losses. It also excludes on a non-recurring basis: (1) loss from discontinued operations, net~~liability; and (5) interest in income of ~~income tax and; (2) loss and related activity from our NGHC Quota Share run-off operations which was commuted in November 2019.~~equity method investments. We ~~exclude~~have excluded net realized gains ~~or losses~~ on investment, OTTI losses, interest in income of equity method investments and foreign exchange and other gains ~~or losses~~ as we believe these are influenced by market opportunities and other factors. We do not believe ~~results from our NGHC Quota Share run-off operations commuted in November 2019, results from our discontinued operations, and~~that ceded risks under retroactive reinsurance agreements are representative of our ongoing and future business. We believe all of these amounts are substantially independent of our business and any potential future underwriting process, therefore, including them would distort the analysis of underlying trends in our operations.

Underwriting ~~loss~~income (loss) is a non-GAAP measure and is calculated as net premiums earned plus other insurance revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities. 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 Condensed Consolidated Financial Statements in the "Notes to Condensed Consolidated Financial Statements (unaudited) Note 3. Segment Information" included under Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q.

Combined ratio is commonly used in the insurance and reinsurance industry in conjunction with underwriting income (loss) as a measure of underwriting profitability. Management measures underwriting results on an overall basis and for each segment on the basis of the combined ratio. The combined ratio is the sum of the net loss and LAE ratio and the expense ratio and the computations of each component are described below. A combined ratio under 100% indicates underwriting profitability, as the net loss and LAE, commission and other acquisition expenses and general and administrative expenses are less than the net premiums earned and other insurance revenue on that business. While the Company has continued to utilize this non-GAAP measure in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2021, it is important to note that as the run-off of our reinsurance portfolios progresses, such ratios may increasingly be of less value to readers as they evaluate the financial results of the Company, particularly compared to historical data. Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 3. Segment Information" ~~included~~ under Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q for further details.

While an important metric of success, underwriting ~~loss~~income (loss) and combined ratio do not reflect all components of profitability, as they do not recognize the 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 reportable segments. Certain general and administrative expenses are generally allocated to segments based on actual costs incurred.

The "net loss and LAE ratio" is derived by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue. The "commission and other acquisition expense ratio" is derived by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue. The "general and administrative expense ratio" is derived by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue. The "expense ratio" is the sum of the commission and other acquisition expense ratio and the general and administrative expense ratio.

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) available to common shareholders (as defined above) divided by average adjusted common shareholders' equity.

Book Value per Common Share and Diluted Book Value per Common 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, because 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 income and external factors, such as interest rates, which can drive changes in unrealized gains or losses on our fixed income investment portfolio, as well as common or preferred share repurchases.

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.

Non-GAAP underwriting income (loss), Non-GAAP loss and LAE ratio, and Non-GAAP combined ratio: Management has further adjusted underwriting loss, as defined above, as well as the reported loss and LAE ratios and reported combined ratios by ~~recognizing into income~~excluding the ~~unamortized deferred gain arising from~~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. ~~The deferred gain represents amounts~~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 ~~Maiden's~~our underwriting ~~income (loss).~~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~~Debt to Adjusted Total Capital Resources and Adjusted Book Value per Common Share: Management has adjusted GAAP shareholders' equity by adding the unamortized deferred gain on retroactive reinsurance arising from the LPT/ADC Agreement to shareholders' equity. The unamortized deferred gain on retroactive reinsurance arising from the LPT/ADC Agreement includes the aggregate impact of: 1) cumulative increases to losses incurred prior to December 31, 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~~Debt to Adjusted Capital Resources and Adjusted Book Value per Common Share. The deferred gain liability represents amounts 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 retroactive reinsurance agreement is helpful to understand future trends in our operations, which will improve ~~Maiden's~~the Company's shareholders' equity over the settlement period.

Certain Operating Measures

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, ~~2019~~2020, filed with the SEC on March 15, 2021, for a general discussion on "Certain Operating Measures" utilized by the 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, ~~2019,~~2020, filed with the SEC on March ~~18, 2020.~~15, 2021. 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 10-Q and "Notes to Consolidated Financial Statements Note 2. Significant Accounting Policies" included within the audited Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, ~~2019,~~2020, filed with the SEC on March ~~18, 2020.~~15, 2021. 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 the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2021			2020			2021			2020
Gross premiums written	$	3,434		$	4,982		$	1,044		$	16,716
Net premiums written	$	3,261		$	4,090		$	565		$	14,462
Net premiums earned	$	13,312		$	21,308		$	25,076		$	52,523
Other insurance revenue	539			250			808			658
Net loss and LAE	5,327			(11,008)			2,968			(32,094)
Commission and other acquisition expenses	(6,899)			(8,154)			(12,841)			(20,127)
General and administrative expenses(1)	(3,808)			(2,413)			(5,985)			(4,670)
Underwriting income (loss)(2)	8,471			(17)			10,026			(3,710)
Other general and administrative expenses(1)	(5,098)			(6,848)			(16,918)			(13,141)
Net investment income	7,278			14,309			17,119			32,273
Net realized gains on investment	849			8,875			8,950			19,913
Total other-than-temporary impairment losses	—			—			—			(1,506)


Foreign exchange and other (losses) gains	(1,588)			(2,295)			1,954			5,902
Interest and amortization expenses	(4,832)			(4,830)			(9,663)			(9,661)
Income tax benefit	257			18			208			3
Interest in income of equity method investments	2,775			—			5,722			—


Net income	8,112			9,212			17,398			30,073
Gain from repurchase of preference shares	18,714			—			81,164			—
Net income available to Maiden common shareholders	$	26,826		$	9,212		$	98,562		$	30,073

Ratios
Net loss and LAE ratio(3)	(38.5)		%	51.0		%	(11.5)		%	60.4		%
Commission and other acquisition expense ratio(4)	49.8		%	37.8		%	49.6		%	37.8		%
General and administrative expense ratio(5)	64.3		%	43.0		%	88.5		%	33.5		%
Expense ratio(6)	114.1		%	80.8		%	138.1		%	71.3		%
Combined ratio(7)	75.6		%	131.8		%	126.6		%	131.7		%

(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 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)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.

For the Three Months Ended June 30, For the Six Months Ended June 30,
($ in thousands) 2020 2019 2020 2019
Gross premiums written $ 4,982
$ 2,117
$ 16,716
$ (559,022 )
Net premiums written $ 4,090
$ (409 ) $ 14,462
$ (561,939 )
Net premiums earned $ 21,308
$ 133,986
$ 52,523
$ 317,088
Other insurance revenue 250
754
658
1,566
Net loss and LAE (11,008 ) (121,561 ) (32,094 ) (274,250 )
Commission and other acquisition expenses (8,154 ) (49,656 ) (20,127 ) (119,273 )
General and administrative expenses⁽¹⁾
(2,413 ) (2,654 ) (4,670 ) (6,951 )
Underwriting loss⁽²⁾
(17 ) (39,131 ) (3,710 ) (81,820 )
Other general and administrative expenses⁽¹⁾
(6,848 ) (9,504 ) (13,141 ) (21,826 )
Net investment income 14,309
31,122
32,273
63,144
Net realized gains on investment 8,875
24,086
19,913
12,985
Total other-than-temporary impairment losses —
—
(1,506 ) —
Foreign exchange and other (losses) gains (2,295 ) 1,207
5,902
6,186
Interest and amortization expenses (4,830 ) (4,830 ) (9,661 ) (9,659 )
Income tax benefit 18
1,026
3
1,064
Net income (loss) from continuing operations 9,212
3,976
30,073
(29,926 )
Loss from discontinued operations, net of income tax —
(19,389 ) —
(22,123 )
Net income (loss) $ 9,212
$ (15,413 ) $ 30,073
$ (52,049 )

Ratios
Net loss and LAE ratio⁽³⁾
51.0 % 90.2 % 60.4 % 86.1 %
Commission and other acquisition expense ratio⁽⁴⁾
37.8 % 36.9 % 37.8 % 37.4 %
General and administrative expense ratio⁽⁵⁾
43.0 % 9.0 % 33.5 % 9.0 %
Expense ratio⁽⁶⁾
80.8 % 45.9 % 71.3 % 46.4 %
Combined ratio⁽⁷⁾
131.8 % 136.1 % 131.7 % 132.5 %


~~(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 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)~~	~~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 ~~(Loss)~~

Net income available to Maiden common shareholders for the three months ended June 30, ~~2020~~2021 was ~~$9.2~~$26.8 million compared to ~~a net loss of $15.4~~$9.2 million for the same period in ~~2019.~~2020. The net improvement in results for the three months ended June 30, ~~2020~~2021 compared to the same period in ~~2019~~2020 was primarily due to the ~~following:~~

~~net income~~gain from ~~continuing operations~~repurchase of ~~$9.2 million compared to net income from continuing operations~~our preference shares of ~~$4.0 million for the same period in 2019 largely due to the following factors:~~

~~a negligible underwriting loss for the three months ended June 30, 2020 compared to $39.1 million in the same period in 2019. The reduction in the underwriting loss was due to:~~


◦	~~the impact of lower loss ratios for current year premiums earned during the three months ended June 30, 2020 compared to the same period in 2019; and~~


◦	favorable prior year loss development of $0.1 million or 0.3 percentage points in the second quarter of 2020 compared to adverse prior year loss development of $26.0 million or 19.3 percentage points during the same period in 2019 which had been incurred primarily within AmTrust Reinsurance Segment.

~~The improved underwriting results were partially offset by the following:~~

~~lower realized gains on investment of $8.9~~$18.7 million for the three months ended June 30, ~~2020~~2021.

Excluding the gain on the repurchase of our preference shares, net income for the three months ended June 30, 2021 was $8.1 million compared to ~~realized gains~~net income of ~~$24.1~~$9.2 million for the same period in ~~2019;~~


•	a reduction in net investment income of $16.8 million or 54.0% for the three months ended June 30, 2020 compared to the same period in 2019 primarily due to the decline in average investable assets of ~~38.0%; and~~

~~foreign exchange and other losses~~2020. The most significant items affecting our financial performance during the second quarter of ~~$2.3~~2021 on a comparative basis to the second quarter of 2020 included:

•underwriting income of $8.5 million for the three months ended June 30, ~~2020~~2021 compared to ~~foreign exchange~~an underwriting loss of $17.0 thousand in the same period in 2020. The improvement in underwriting income was largely due to:

◦favorable prior year loss development of $12.8 million or 92.5 percentage points in the second quarter of 2021 compared to favorable prior year loss development of $0.1 million or 0.3 percentage points during the same period in 2020. This was primarily generated by favorable prior year loss development in the AmTrust Reinsurance segment in the second quarter of 2021; and ~~other gains~~partially offset by:

◦an underwriting loss of ~~$1.2~~$4.3 million for the three months ended June 30, 2021 on a current accident year basis compared to an underwriting loss of $0.1 million for the same period in ~~2019.~~2020 on a current accident year basis, due to higher loss ratios and higher general and administrative expenses, many of which will be nonrecurring.

•

net income from discontinued operations of $0.0 million for the three months ended June 30, 2020 compared to a net loss from discontinued operations of $19.4 million for the same period in 2019 as a result of the Settlement and Commutation Agreement entered into by Maiden and Enstar on July 31, 2019 which caused a net additional loss of ~~$16.7 million~~ ~~to be recognized.~~

•corporate general and administrative expenses decreased to $5.1 million for the three months ended June 30, 2021 compared to $6.8 million for the same period in 2020 due to incentive compensation incurred in the second quarter of 2020;

•net investment income decreased to $7.3 million for the three months ended June 30, 2021 compared to investment income of $14.3 million for the same period in 2020 primarily due to the decline in average invested assets of 22.6%;

•realized gains on investment decreased to $0.8 million for the three months ended June 30, 2021 compared to net realized gains of $8.9 million for the same period in 2020; and

•interest in income of equity method investments of $2.8 million for the three months ended June 30, 2021.

Net income available to Maiden common shareholders for the six months ended June 30, 2021 was $98.6 million compared to a net income of $30.1 million for the same period in 2020. The net improvement in our results for the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the gain from repurchase of our preference shares of $81.2 million for the six months ended June 30, 2021.

Excluding the gain on the repurchase of our preference shares, net income for the six months ended June 30, ~~2020~~2021 was ~~$30.1~~$17.4 million compared to a net ~~loss~~income of ~~$52.0~~$30.1 million for the same period in ~~2019.~~2020. The ~~net improvement in results for~~most significant items affecting our financial performance during the six months ended June 30, ~~2020 compared~~2021 on a comparative basis to the same period in ~~2019 was primarily due to the following:~~2020 included:

~~net~~•underwriting income ~~from continuing operations~~ of ~~$30.1 million compared to net loss from continuing operations of $29.9 million for the same period in 2019 largely due to the following factors:~~

~~underwriting loss of $3.7 million compared to $81.8 million in the same period in 2019. The reduction in the underwriting loss was due to:~~


◦	~~the impact of lower loss ratios for current year premiums earned during the six months ended June 30, 2020 compared to the same period in 2019; and~~


◦	favorable prior year loss development of $0.6 million or 1.1 percentage points in the first half of 2020 compared to adverse prior year loss development of $33.3 million or 10.5 percentage points during the same period in 2019 which had been incurred primarily within AmTrust Reinsurance Segment.

~~realized gains on investment of $19.9~~$10.0 million for the six months ended June 30, ~~2020~~2021 compared to ~~realized gains~~an underwriting loss of ~~$13.0~~$3.7 million ~~for the same period in 2019.~~

~~The improved underwriting results and realized gains were partially offset by the following:~~

~~a reduction in net investment income of $30.9 million or 48.9% for~~during the six months ended June 30, ~~2020~~2020. The improvement in underwriting income was largely due to:

◦favorable prior year loss development of $18.4 million or 71.0 percentage points for the first half of 2021 compared to favorable prior year loss development of $0.6 million or 1.1 percentage points for the ~~same period in 2019,~~first half of 2020 which had been incurred primarily ~~due to~~within the ~~decline in average investable assets~~AmTrust Reinsurance segment for each respective period. This was partially offset by:

◦an underwriting loss of ~~35.9%; and~~

~~foreign exchange and other gains of $5.9~~$8.3 million for the six months ended June 30, ~~2020~~2021 on a current accident year basis compared to ~~foreign exchange and other gains~~an underwriting loss of ~~$6.2~~$4.3 million for the same period in ~~2019.~~2020 on a current accident year basis, due to higher expense ratios caused by a significant decrease in earned premium.

•

net income from discontinued operations of $0.0 million for the six months ended June 30, 2020 compared to a net loss from discontinued operations of $22.1 million for the same period in 2019 as a result of the Settlement and Commutation Agreement entered into by Maiden and Enstar on July 31, 2019 which caused a net additional loss of ~~$16.7 million~~ ~~to be recognized.~~

•no investment impairment losses for the six months ended June 30, 2021 compared to $1.5 million in 2020;

•net investment income decreased to $17.1 million for the six months ended June 30, 2021 compared to $32.3 million for the same period in 2020, primarily due to the decline in average invested assets of 22.0%;

•realized gains on investment decreased to $9.0 million for the six months ended June 30, 2021 compared to $19.9 million for the same period in 2020;

•corporate general and administrative expenses increased to $16.9 million for the six months ended June 30, 2021 compared to $13.1 million for the same period in 2020 due to higher incentive compensation costs incurred;

•foreign exchange and other gains decreased to $2.0 million for the six months ended June 30, 2021 compared to $5.9 million for the same period in 2020; and

•interest in income of equity method investments of $5.7 million for the six months ended June 30, 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 six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:

For the Three Months Ended June 30, 2020 2019 Change in
($ in thousands) Total Total $ %
Diversified Reinsurance $ 8,553
$ 8,718
$ (165 ) (1.9 )%
AmTrust Reinsurance (4,463 ) (9,127 ) 4,664
(51.1 )%
Total $ 4,090
$ (409 ) $ 4,499
NM

For the Six Months Ended June 30, 2020 2019 Change in
($ in thousands) Total Total $ %
Diversified Reinsurance $ 18,925
$ 23,665
$ (4,740 ) (20.0 )%
AmTrust Reinsurance (4,463 ) (585,604 ) 581,141
(99.2 )%
Total $ 14,462
$ (561,939 ) $ 576,401
(102.6 )%

~~NM - not meaningful~~


For the Three Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Diversified Reinsurance	$	5,018			$	8,553		$	(3,535)	(41.3)	%
AmTrust Reinsurance	(1,757)				(4,463)			2,706		(60.6)	%


Total	$	3,261			$	4,090		$	(829)	(20.3)	%

For the Six Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Diversified Reinsurance	$	4,784			$	18,925		$	(14,141)	(74.7)	%
AmTrust Reinsurance	(4,219)				(4,463)			244		(5.5)	%


Total	$	565			$	14,462		$	(13,897)	(96.1)	%

Net premiums written for the three and six months ended June 30, ~~2020 were $4,090~~2021 decreased to $3.3 million and ~~$14,462,~~$0.6 million, respectively, compared to net premiums written of ~~$(409)~~$4.1 million and ~~$(561,939)~~$14.5 million in the same respective periods in ~~2019~~2020 due ~~to the following:~~to:

•Premiums written in the Diversified Reinsurance segment decreased by ~~$0.2~~$3.5 million or ~~1.9%~~41.3% and ~~$4.7~~$14.1 million or ~~20.0%~~74.7% for the three and six months ended June 30, ~~2020, respectively,~~2021 compared to the same respective periods in ~~2019~~2020 largely due to ~~lower~~the return of unearned premiums ~~written in~~after the non-renewal of the German Auto ~~programs within~~Programs reinsurance contract in our IIS ~~business.~~business on January 1, 2021.

•

There were no new written premiums within the AmTrust Reinsurance segment due to the termination of both the AmTrust Quota Share and the European Hospital Liability Quota Share effective January 1, 2019. For the three and six months ended June 30, 2020 and 2019, the negative premiums written are primarily the result of return premium and other adjustments after the termination of the AmTrust contracts in 2019. In 2019, the Partial Termination Amendment resulted in Maiden Reinsurance returning approximately ~~$648.0 million~~ ~~in unearned premium to AII, or $436.8 million net of applicable ceding commission and brokerage.~~

•There were no new written premiums within the AmTrust Reinsurance segment due to the termination of both the AmTrust Quota Share and the European Hospital Liability Quota Share effective January 1, 2019. Negative premiums for the three and six months ended June 30, 2021 were mainly due to premium adjustments on Small Commercial Business policies.

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 ~~$112.7~~$8.0 million or ~~84.1%~~37.5% and ~~$264.6~~$27.4 million or ~~83.4%~~52.3% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019.~~2020. The tables below compare net premiums earned by our reportable segments, reconciled to the total consolidated net premiums earned, for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


For the Three Months Ended June 30,	2020				2019				Change in					For the Three Months Ended June 30,	2021				2020				Change in
($ in thousands)	Total		% of Total		Total		% of Total		$			%		($ in thousands)	Total		% of Total		Total		% of Total		$		%
Diversified Reinsurance	$	11,527	54.1	%	$	22,472	16.8	%	$	(10,945	)	(48.7	)%	Diversified Reinsurance	$	6,962	52.3	%	$	11,527	54.1	%	$	(4,565)	(39.6)	%
AmTrust Quota Share Reinsurance	9,781		45.9	%	111,514		83.2	%	(101,733		)	(91.2	)%	AmTrust Quota Share Reinsurance	6,350		47.7	%	9,781		45.9	%	(3,431)		(35.1)	%

Total	$	21,308	100.0	%	$	133,986	100.0	%	$	(112,678	)	(84.1	)%	Total	$	13,312	100.0	%	$	21,308	100.0	%	$	(7,996)	(37.5)	%

For the Six Months Ended June 30,	2020				2019				Change in					For the Six Months Ended June 30,	2021				2020				Change in
($ in thousands)	Total		% of Total		Total		% of Total		$			%		($ in thousands)	Total		% of Total		Total		% of Total		$		%
Diversified Reinsurance	$	24,058	45.8	%	$	47,764	15.1	%	$	(23,706	)	(49.6	)%	Diversified Reinsurance	$	13,202	52.6	%	$	24,058	45.8	%	$	(10,856)	(45.1)	%
AmTrust Quota Share Reinsurance	28,465		54.2	%	269,324		84.9	%	(240,859		)	(89.4	)%	AmTrust Quota Share Reinsurance	11,874		47.4	%	28,465		54.2	%	(16,591)		(58.3)	%

Total	$	52,523	100.0	%	$	317,088	100.0	%	$	(264,565	)	(83.4	)%	Total	$	25,076	100.0	%	$	52,523	100.0	%	$	(27,447)	(52.3)	%

Net premiums earned in the AmTrust Reinsurance segment for the three and six months ended June 30, ~~2020~~2021 decreased by ~~$101.7~~$3.4 million or ~~91.2%~~35.1% and ~~$240.9~~$16.6 million or ~~89.4%~~58.3%, respectively, compared to the same respective periods in ~~2019~~2020 due to ~~the terminations~~termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019. Please refer to the analysis of our AmTrust Reinsurance segment ~~on page 49~~ for further discussion.

Net premiums earned in our Diversified Reinsurance segment for the three and six months ended June 30, ~~2020~~2021 decreased by $4.6 million or 39.6% and $10.9 million or ~~48.7% and $23.7 million or 49.6%~~45.1%, respectively, compared to the same respective periods in ~~2019 driven by non-renewals in our European Capital Solutions business combined with reductions in~~2020 due to German Auto programs quota share ~~cessions for German Auto Programs within~~reinsurance contract which went into run-off on January 1, 2021 in our IIS business. Please refer to the analysis of our Diversified Reinsurance segment ~~on page 47~~ for further discussion.

Other Insurance Revenue

All of our Other Insurance Revenue is produced by our Diversified Reinsurance segment. Please refer to the analysis below of our Diversified Reinsurance segment ~~on page 48~~ for further discussion.

Net Investment Income

Net investment income decreased by ~~$16.8~~$7.0 million or ~~54.0%~~49.1% and ~~$30.9~~$15.2 million or ~~48.9%~~47.0% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019, primarily~~2020 largely due to the decline in average ~~investable~~invested assets of ~~38.0%~~22.6% and ~~35.9%~~22.0% in those same respective periods. The decline in ~~investable~~invested assets is ~~largely due to~~driven by the cessation of active reinsurance underwriting which materially reduced our revenues ~~and is responsible for~~resulting in significant negative operating cash flows as we run-off our existing reinsurance liabilities. ~~Lower~~

Net investment income ~~was~~ also ~~driven by~~decreased due to the decline in average book yields to 1.5% and 1.7% for the three and six months ended June 30, 2021, respectively, compared to 2.3% and 2.5% for the three and six months ended June 30, 2020, ~~respectively, compared to 3.1% for~~which is the ~~same respective periods~~result of both lower interest rates and shorter duration of assets in ~~2019.~~our fixed income portfolios.

The following table details ~~the Company's~~our average ~~investable~~invested assets and ~~average~~ book yield for the three and six months ended June 30, ~~2020 compared~~2021 and 2020:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2021			2020			2021			2020
Average invested assets(1)	$	1,948,866		$	2,518,159		$	2,045,586		$	2,621,092
Average book yield(2)	1.5		%	2.3		%	1.7		%	2.5		%

(1)The average of our total investments (excluding equity method investments), cash, restricted cash and cash equivalents, funds withheld receivable and loan to related party held at each quarter-end during the ~~same respective periods in 2019:~~period.

For the Three Months Ended June 30, For the Six Months Ended June 30,
($ in thousands) 2020 2019 2020 2019
Average investable assets⁽¹⁾
$ 2,518,159
$ 4,061,954
$ 2,621,092
$ 4,086,959
Average book yield⁽²⁾
2.3 % 3.1 % 2.5 % 3.1 %


~~(1)~~	~~The average of our total investments, cash, restricted cash and cash equivalents, funds withheld receivable and loan to related party held at each quarter-end during the period.~~


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

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

Net Realized Gains on Investment

Net realized gains on investment were ~~$8.9~~$0.8 million and ~~$19.9~~$9.0 million for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to net realized gains of ~~$24.1~~$8.9 million and ~~$13.0~~$19.9 million for the same respective periods in ~~2019. The~~2020. Net realized gains for the three and six months ended June 30, 2021 included the recognition of $0.6 million in unrealized losses and $3.9 million in unrealized gains, respectively, related to an investment in an insurtech start-up company that was acquired by a special purpose acquisition company. In addition, realized gains for the three and six months ended June 30, 2021 and 2020 ~~were primarily due to~~reflect sales of corporate bonds ~~during 2020~~ for the settlement of claim payments to AmTrust.

The net realized gains of $24.1 million and $13.0 million for the same respective periods in 2019 were driven by sales of corporate bonds during the second quarter in anticipation of completing and funding the LPT/ADC Agreement with Enstar. The year-to-date gains were partially offset by net investment losses realized on the non-cash transfer of corporate and other debt securities in the first quarter of 2019 related to the Partial Termination Amendment with AmTrust and the conversion of a portion of reinsurance trust assets held as collateral into a funds withheld receivable.

Net Impairment Losses Recognized in Earnings

The Company ~~recognized $1.5 million of~~did not recognize any OTTI losses ~~in earnings~~ on ~~two~~its fixed maturity ~~securities~~portfolio for ~~the~~ ~~six months ended~~ ~~June 30, 2020. There were no OTTI losses recognized during the three months ended June 30, 2020 and~~ the three and six months ended June 30, ~~2019.~~2021 and three months ended June 30, 2020. There were $1.5 million of OTTI losses recorded on two fixed maturity securities for the six months ended June 30, 2020.

Interest in Income of Equity Method Investments

The Company recognized interest in income of equity method investments of $2.8 million and $5.7 million for the three and six months ended June 30, 2021, respectively. These investments include hedge fund investments of $33.1 million as well as investments in limited partnerships of $27.1 million.

Net Loss and LAE

Net loss and LAE decreased by ~~$110.6~~$16.3 million and ~~$242.2~~$35.1 million during the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019~~2020 largely due to lower earned premiums and favorable prior year reserve development of $12.8 million and $18.4 million for the ~~cessation of active reinsurance underwriting, including the termination of the AmTrust Reinsurance quota share agreements effective January 1, 2019.~~three and six months ended June 30, 2021, respectively.

The loss ratio for the second quarter of ~~2020~~2021 was ~~modestly~~ impacted by net favorable prior year reserve development of $12.8 million or 92.5 percentage points compared to net favorable prior year reserve development of $0.1 million or 0.3 percentage points ~~compared to~~during the same period in 2020. The development was primarily generated within the AmTrust Reinsurance segment.

The loss ratio for the six months ended June 30, 2021 was impacted by net ~~adverse~~favorable prior year reserve development of ~~$26.0~~$18.4 million or ~~19.3~~71.0 percentage points compared to net favorable prior year reserve development of $0.6 million or 1.1 percentage points during the same period in ~~2019. The loss ratio for the~~ ~~six months ended~~ ~~June 30, 2020 was impacted by net~~ ~~favorable~~ ~~prior year reserve development of~~ ~~$0.6 million~~ or ~~1.1~~ ~~percentage points compared to net~~ ~~adverse~~ ~~prior year reserve development of~~ ~~$33.3 million~~ or ~~10.5~~ ~~percentage points during the same period in 2019.~~2020. The prior year development was primarily within the AmTrust Reinsurance segment and is discussed in greater detail in the individual segment discussion and analysis.

The net loss and LAE ratios decreased to ~~51.0%~~(38.5)% and ~~60.4%~~(11.5)% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~90.2%~~51.0% and ~~86.1%~~60.4% for the same respective periods in ~~2019 primarily~~2020 due to significant ~~reduction in adverse~~favorable prior year loss ~~development resulting from the termination of~~experience in the AmTrust Reinsurance ~~quota share contracts effective January 1, 2019.~~segment that developed in the three and six months ended June 30, 2021.

Commission and Other Acquisition Expenses

Commission and other acquisition expenses decreased by ~~$41.5~~$1.3 million or ~~83.6%~~15.4% and ~~$99.1~~$7.3 million or ~~83.1%~~36.2% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019 due to significantly lower earned premiums in both of our reportable segments.~~2020. The commission and other acquisition expense ratio ~~was 37.8%~~increased to 49.8% and 49.6% for ~~both~~ the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~36.9%~~ ~~and~~ ~~37.4%~~37.8% for ~~the same~~both respective periods in ~~2019.~~2020 largely due to a change in mix of premiums written in our Diversified Reinsurance segment.

General and Administrative Expenses

General and administrative expenses, which include both segment and corporate expenses ~~which are~~ segregated for analytical purposes as a component of underwriting ~~income. General~~income, for the three and six months ended June 30, 2021 and 2020 were comprised of:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
($ in thousands)	2021		2020		2021		2020
General and administrative expenses – segments	$	3,808	$	2,413	$	5,985	$	4,670
General and administrative expenses – corporate	5,098		6,848		16,918		13,141
Total general and administrative expenses	$	8,906	$	9,261	$	22,903	$	17,811

Total general and administrative expenses decreased by $0.4 million or 3.8% and increased by $5.1 million or 28.6% for the three and six months ended June 30, 2021, respectively, compared to the same respective periods in 2020.

Corporate general and administrative expenses for the three and six months ended June 30, ~~2020 and 2019 comprise:~~

For the Three Months Ended June 30, For the Six Months Ended June 30,
($ in thousands) 2020 2019 2020 2019
General and administrative expenses – segments $ 2,413
$ 2,654
$ 4,670
$ 6,951
General and administrative expenses – corporate 6,848
9,504
13,141
21,826
Total general and administrative expenses $ 9,261
$ 12,158
$ 17,811
$ 28,777

~~Total general and administrative expenses~~2021 decreased by $1.8 million or 25.6% and increased by $3.8 million or 28.7% compared to the same respective periods in 2020. The $3.8 million increase in corporate expenses for the six months ended June 30, 2021 compared to the same respective period in 2020 was due to higher discretionary equity-based and cash incentive compensation paid to employees in 2021 as compared to 2020.

The Company incurred operating expenses of $2.2 million and $2.9 million ~~or 23.8% and $11.0 million or 38.1% for~~during the three and six months ended June 30, ~~2020,~~2021, respectively, ~~compared~~that are not considered part of our ongoing business operations, and which are largely related to ~~the same respective periods in 2019. The general and administrative expense ratio increased to 43.0% and 33.5%~~accelerated depreciation for fixed assets connected with the three and six months ended June 30, 2020, respectively, from 9.0% for both the three and six months ended June 30, 2019 as a result of significantly lower earned premiums compared to the prior periods. Lower earned premiums was largely due to termination of ~~the AmTrust Reinsurance quota share contracts effective January 1, 2019~~our principal office lease in Bermuda as well as salary and ~~non-renewals within our International business in the Diversified Reinsurance segment.~~

The decreased corporate expenses for the three and six months ended June 30, 2020 compared to the same respective periods in 2019 were largely due to lower salary, benefits and other corporate expensesrelated costs associated with ~~the Strategic Review and related~~ headcount reductions ~~since 2018.~~and certain regulatory costs in our international operations.

Interest and Amortization Expenses

The interest and amortization expenses related to the outstanding senior notes issued by Maiden Holdings in 2016 and Maiden NA in 2013 ("Senior Notes") were $4.8 million and $9.7 million for the three and six months ended June 30, 2021 and 2020, ~~and 2019,~~ respectively.

Please refer to "Notes to Condensed Consolidated Financial Statements (unaudited) Note 7. Long Term Debt" for further details on the Senior Notes. The weighted average effective interest rate for the Senior Notes was 7.6% for the three and six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively.

Foreign Exchange and Other Gains (Losses) ~~Gains~~

Net foreign exchange and other gains or losses amounted to ~~$2.3~~losses of $1.6 million ~~losses~~ and ~~$5.9~~gains of $2.0 million ~~gains~~ during the three and six months ended June 30, ~~2020,~~2021, respectively, compared to net foreign exchange and other losses of $2.3 million and gains of ~~$1.2 million and $6.2~~$5.9 million for the same respective periods in ~~2019.~~2020.

Net foreign exchange ~~gains~~losses of ~~$6.3~~$1.2 million and $2.1 million occurred during the ~~six~~three months ended June 30, 2021 and June 30, 2020, respectively, due to the ~~strengthening~~weakening of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in euro.

Net foreign exchange ~~and other~~ gains of ~~$6.2~~$2.2 million and $6.3 million for the six months ended June 30, ~~2019~~ ~~included $4.3 million of proceeds received from the sale of AVS~~2021 and ~~its related European subsidiaries to Allianz Partners on January 10, 2019. Excluding the gain of $4.3 million, net foreign exchange gains of $1.9 million~~June 30, 2020, respectively, were ~~realized primarily~~ attributable to the strengthening of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities ~~mainly~~ denominated in euro.

Underwriting Results by Reportable Segment

Diversified Reinsurance Segment

The underwriting results and associated ratios for our Diversified Reinsurance segment for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,							For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2020			2019			2020			2019			($ in thousands)	2021			2020			2021			2020
Gross premiums written	$	9,687		$	11,244		$	21,421		$	26,582		Gross premiums written	$	5,191		$	9,687		$	5,263		$	21,421
Net premiums written	$	8,553		$	8,718		$	18,925		$	23,665		Net premiums written	$	5,018		$	8,553		$	4,784		$	18,925
Net premiums earned	$	11,527		$	22,472		$	24,058		$	47,764		Net premiums earned	$	6,962		$	11,527		$	13,202		$	24,058
Other insurance revenue	250			754			658			1,566			Other insurance revenue	539			250			808			658
Net loss and LAE	(6,038		)	(12,497		)	(13,079		)	(26,888		)	Net loss and LAE	(1,247)			(6,038)			(2,662)			(13,079)
Commission and other acquisition expenses	(4,374		)	(8,147		)	(9,353		)	(17,408		)	Commission and other acquisition expenses	(4,452)			(4,374)			(8,207)			(9,353)
General and administrative expenses	(1,746		)	(2,092		)	(3,359		)	(5,123		)	General and administrative expenses	(3,033)			(1,746)			(4,607)			(3,359)
Underwriting (loss) income	$	(381	)	$	490		$	(1,075	)	$	(89	)
Underwriting loss													Underwriting loss	$	(1,231)		$	(381)		$	(1,466)		$	(1,075)
Ratios													Ratios
Net loss and LAE ratio	51.3		%	53.8		%	52.9		%	54.5		%	Net loss and LAE ratio	16.6		%	51.3		%	19.0		%	52.9		%
Commission and other acquisition expense ratio	37.1		%	35.1		%	37.8		%	35.3		%	Commission and other acquisition expense ratio	59.4		%	37.1		%	58.6		%	37.8		%
General and administrative expense ratio	14.8		%	9.0		%	13.6		%	10.4		%	General and administrative expense ratio	40.4		%	14.8		%	32.9		%	13.6		%
Expense ratio	51.9		%	44.1		%	51.4		%	45.7		%	Expense ratio	99.8		%	51.9		%	91.5		%	51.4		%
Combined ratio	103.2		%	97.9		%	104.3		%	100.2		%	Combined ratio	116.4		%	103.2		%	110.5		%	104.3		%

The combined ratio for the three and six months ended June 30, ~~2020~~2021 increased to 116.4% and 110.5%, respectively, compared to 103.2% and 104.3%~~, respectively, compared to 97.9% and 100.2%~~ for the same respective periods in ~~2019,~~2020 largely due to significant declines in earned premium volume combined with higher non-recurring general and administrative expenses in our IIS business, which increased the expense ~~ratio.~~ratio which was partly offset by lower loss ratios. Please see the respective sections below on net loss and LAE, commissions and other acquisition expenses and general and administrative expenses for factors that have impacted the combined ~~ratios in the discussion below.~~ratios.

Premiums — Gross premiums written decreased by ~~$1.6~~$4.5 million or ~~13.8%~~46.4% and ~~$5.2~~$16.2 million or ~~19.4%~~75.4% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019.~~2020. This was primarily due to ~~lower~~the return of unearned premiums written in a German Auto ~~Programs~~quota share reinsurance contract in our IIS business which went into run-off on January 1, 2021.

Net premiums written decreased by $3.5 million or 41.3% and $14.1 million or 74.7% during the three and six months ended June 30, ~~2020. Net~~2021, respectively, compared to the same respective periods in 2020 due to return of unearned premiums written ~~decreased~~in our German Auto quota share reinsurance contract which went into run-off on January 1, 2021. Direct premiums written by ~~$0.2~~Maiden LF and Maiden GF increased by $0.5 million or ~~1.9%~~10.0% and ~~$4.7~~$0.3 million or ~~20.0%~~3.1% during the three and six months ended June 30, ~~2020~~2021, respectively, compared to the same respective periods in ~~2019 mainly due to lower net premiums written in our German Auto programs within our IIS business as discussed above.~~2020.

The tables below show net premiums written by line of business for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


For the Three Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Net Premiums Written

International	$	5,028			$	8,498		$	(3,470)	(40.8)	%
Other	(10)				55			(65)		(118.2)	%

Total Diversified Reinsurance	$	5,018			$	8,553		$	(3,535)	(41.3)	%

For the Six Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Net Premiums Written
International	$	4,784			$	18,870		$	(14,086)	(74.6)	%
Other	—				55			(55)		(100.0)	%

Total Diversified Reinsurance	$	4,784			$	18,925		$	(14,141)	(74.7)	%

For the Three Months Ended June 30, 2020 2019 Change in
($ in thousands) Total Total $ %
Net Premiums Written
International $ 8,498
$ 8,736
$ (238 ) (2.7 )%
Other 55
(18 ) 73
NM
Total Diversified Reinsurance $ 8,553
$ 8,718
$ (165 ) (1.9 )%

For the Six Months Ended June 30, 2020
2019 Change in
($ in thousands) Total Total $ %
Net Premiums Written
International $ 18,870
$ 23,683
$ (4,813 ) (20.3 )%
Other 55
(18 ) 73
NM
Total Diversified Reinsurance $ 18,925
$ 23,665
$ (4,740 ) (20.0 )%

~~NM - not meaningful~~

Net premiums earned decreased by $4.6 million or 39.6% and $10.9 million or ~~48.7% and $23.7 million or 49.6%~~45.1% during the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019~~2020 primarily due to lower earned premiums from German Auto programs ~~and non-renewals~~which have been in ~~our European Capital Solutions business~~run-off since ~~2019.~~January 1, 2021. The tables below show net premiums earned by line of business for the three and six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:

For the Three Months Ended June 30, 2020 2019 Change in
($ in thousands) Total Total $ %
Net Premiums Earned
International $ 11,472
$ 22,490
$ (11,018 ) (49.0 )%
Other 55
(18 ) 73
NM
Total Diversified Reinsurance $ 11,527
$ 22,472
$ (10,945 ) (48.7 )%

For the Six Months Ended June 30, 2020 2019 Change in
($ in thousands) Total Total $ %
Net Premiums Earned
International $ 24,003
$ 47,782
$ (23,779 ) (49.8 )%
Other 55
(18 ) 73
NM
Total Diversified Reinsurance $ 24,058
$ 47,764
$ (23,706 ) (49.6 )%

~~NM - not meaningful~~


For the Three Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Net Premiums Earned

International	$	6,972			$	11,472		$	(4,500)	(39.2)	%
Other	(10)				55			(65)		(118.2)	%

Total Diversified Reinsurance	$	6,962			$	11,527		$	(4,565)	(39.6)	%

For the Six Months Ended June 30,	2021		2020		Change in
($ in thousands)	Total			Total			$	%
Net Premiums Earned
International	$	13,202			$	24,003		$	(10,801)	(45.0)	%
Other	—				55			(55)		(100.0)	%

Total Diversified Reinsurance	$	13,202			$	24,058		$	(10,856)	(45.1)	%

Other Insurance Revenue — Other insurance revenue ~~which~~ represents $0.2 million of fee income earned from our GLS business for the three and six months ended June 30, 2021, as well as fee income derived from our IIS business that is not directly associated with premium revenue assumed by the Company for the three and six months ended June 30, 2021 and 2020 as ~~well as other~~specified in the table below. Other income ~~earned from transitional services relating to the sale~~ of ~~Maiden US, decreased by $0.5 million or 66.8%~~$11.0 thousand and ~~$0.9 million or 58.0%~~$66.0 thousand for the three and six months ended June 30, 2020, respectively, was generated from transitional services provided relating to the sale of Maiden US.

Other insurance revenue increased by $0.3 million or 115.6% and $0.2 million or 22.8% for the three and six months ended June 30, 2021, respectively, compared to the same respective periods in 2019. This was due to the sale of AVS and its subsidiaries on January 10, 2019 as a substantial portion of our fee income was generated by AVS and its subsidiaries in Germany and Austria through its point of sale producers in select OEM's dealerships.

2020. The tables below show other insurance revenue by source for the three and six months ended June 30, 2021 and 2020, ~~and 2019:~~respectively:

For the Three Months Ended June 30, 2020 2019 Change

($ in thousands)

%
International $ 239
$ 325
$ (86 ) (26.5 )%
Other income 11
429
(418 ) (97.4 )%
Total Diversified Reinsurance $ 250
$ 754
$ (504 ) (66.8 )%

For the Six Months Ended June 30, 2020 2019 Change
($ in thousands) %
International $ 592
$ 1,061
$ (469 ) (44.2 )%
Other income 66
505
(439 ) (86.9 )%
Total Diversified Reinsurance $ 658
$ 1,566
$ (908 ) (58.0 )%


For the Three Months Ended June 30,	2021		2020		Change
	($ in thousands)						%
International	$	384	$	239	$	145	60.7	%
Other income	155		11		144		1,309.1	%
Total Diversified Reinsurance	$	539	$	250	$	289	115.6	%

For the Six Months Ended June 30,	2021		2020		Change
	($ in thousands)						%
International	$	653	$	592	$	61	10.3	%
Other income	155		66		89		134.8	%
Total Diversified Reinsurance	$	808	$	658	$	150	22.8	%

Net Loss and LAE — Net loss and LAE decreased by ~~$6.5~~$4.8 million or ~~51.7%~~79.3% and ~~$13.8~~$10.4 million or ~~51.4%~~79.6% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019.~~2020 due to lower earned premiums. Net loss and LAE ratio decreased to ~~51.3%~~16.6% and ~~52.9%~~19.0% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared with ~~53.8%~~51.3% and ~~54.5%~~52.9% during the same respective periods in ~~2019.~~2020.

During the three months ended June 30, ~~2020,~~2021, the net loss and LAE ratio decreased by ~~2.5~~34.7 percentage points ~~compared~~compared to the same period in ~~2019.~~2020. The ~~2020~~2021 loss ratio was impacted by ~~adverse~~favorable prior year loss reserve development which was ~~$0.4 million~~$951.0 thousand or ~~3.1~~12.7 percentage points during the three months ended June 30, ~~2020,~~2021 compared to the impact of ~~favorable~~adverse development of ~~$1.1~~$0.4 million or ~~4.5~~3.1 percentage points on the loss ratio for the same period in ~~2019.~~2020. The loss development in 2021 was due to favorable development experienced in European Capital Solutions and other run-off business while the loss development in 2020 was driven by adverse experience in specific German Auto ~~programs while the loss development in 2019 was driven by favorable experience in German Auto~~ programs.

During the six months ended June 30, ~~2020,~~2021, the net loss and LAE ratio decreased by ~~1.6~~33.9 percentage points compared to the same period in ~~2019.~~2020. The ~~2020~~2021 loss ratio was impacted by favorable prior year loss reserve development ~~which was $0.2 million~~ of $937.0 thousand or ~~0.7~~ 6.7 percentage points during ~~the six months ended June 30, 2020,~~2021, compared to the impact of favorable development of ~~$2.1~~$0.2 million or ~~4.4~~0.7 percentage points on the loss ratio in ~~2019.~~2020. The ~~loss~~2021 development ~~in 2020~~ was driven by favorable experience in ~~German Auto programs,~~European Capital Solutions and other run-off business while the ~~favorable loss~~2020 development ~~in 2019~~ was due to favorable experience ~~from facultative reinsurance run-off lines as well as~~in German Auto programs.

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 changes in the mix of business and the impact of increases 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 impact on the loss ratio described above, the combined ratio increased by ~~5.3~~13.2 and ~~4.1~~6.2 percentage points for the three and six months ended June 30, ~~2020~~2021, respectively, compared to the same respective periods in ~~2019.~~2020.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses decreased by ~~$3.8~~$0.1 million or ~~46.3%~~1.8% and ~~$8.1~~$1.1 million or ~~46.3%~~12.3% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019, largely as a result of the corresponding decrease in~~2020 primarily due to lower net premiums earned which similarly decreased in this segment.

The commission and other acquisition expense ratio for the three and six months ended June 30, ~~2020~~2021 increased to 59.4% and 58.6%, respectively, compared to 37.1% and 37.8%~~, respectively, compared to 35.1% and 35.3%~~ for the same respective periods in ~~2019,~~2020, reflecting the change in the mix of pro rata versus excess of loss premiums written compared to the same respective periods in ~~2019.~~2020. Please refer to the preceding paragraph for other factors that can impact the combined ratio.

General and Administrative Expenses — General and administrative expenses ~~decreased~~increased by ~~$0.3~~$1.3 million or ~~16.5%~~73.7% and ~~$1.8~~$1.2 million or ~~34.4%~~37.2% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019.~~2020. The general and administrative expense ratio increased to ~~14.8%~~40.4% and ~~13.6%~~32.9% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~9.0%~~14.8% and ~~10.4%~~13.6% for the same respective periods in ~~2019~~2020 largely due to lower net premiums earned which decreased significantly combined with higher non-recurring expenses. This included severance costs and certain regulatory costs of approximately $1.0 million incurred in our IIS business unit which have largely driven the increased expense ratios for the three and six months ended June 30, 2021 compared to ~~prior periods.~~the same respective periods in 2020.

The overall expense ratio (including commission and other acquisition expenses) for the three and six months ended June 30, ~~2020~~2021 increased to 99.8% and 91.5%, respectively, compared to 51.9% and 51.4% ~~compared to 44.1% and 45.7%~~ for the same respective periods in ~~2019~~2020 largely due to net premiums earned which decreased combined with higher non-recurring expenses as ~~a result of lower premium revenue compared to the respective prior year periods.~~discussed above.

AmTrust Reinsurance Segment

The AmTrust Reinsurance segment reported underwriting ~~results~~income of ~~$0.4~~$9.7 million ~~income~~ and ~~$2.6~~$11.5 million ~~loss~~ during the three and six months ended June 30, ~~2020,~~2021, respectively, compared to underwriting income of $0.4 million and an underwriting loss of ~~$39.6~~$2.6 million ~~and $81.5 million in~~for the same respective periods in ~~2019.~~2020. The ~~improved~~improvement in the underwriting results ~~in the current~~was largely due to impact of favorable prior year ~~periods were primarily driven by a lower combined ratio on significantly lower earned premiums~~loss development during the three and six months ended June 30, ~~2020 compared to the respective prior periods in 2019.~~2021.

The underwriting results and associated ratios for the AmTrust Reinsurance segment for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 were as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,							For the Three Months Ended June 30,						For the Six Months Ended June 30,
($ in thousands)	2020			2019			2020			2019			($ in thousands)	2021			2020			2021			2020
Gross premiums written	$	(4,705	)	$	(9,127	)	$	(4,705	)	$	(585,604	)	Gross premiums written	$	(1,757)		$	(4,705)		$	(4,219)		$	(4,705)
Net premiums written	$	(4,463	)	$	(9,127	)	$	(4,463	)	$	(585,604	)	Net premiums written	$	(1,757)		$	(4,463)		$	(4,219)		$	(4,463)
Net premiums earned	$	9,781		$	111,514		$	28,465		$	269,324		Net premiums earned	$	6,350		$	9,781		$	11,874		$	28,465
Net loss and LAE	(4,970		)	(109,088		)	(19,015		)	(247,158		)	Net loss and LAE	6,574			(4,970)			5,630			(19,015)
Commission and other acquisition expenses	(3,780		)	(41,509		)	(10,774		)	(101,865		)	Commission and other acquisition expenses	(2,447)			(3,780)			(4,634)			(10,774)
General and administrative expenses	(667		)	(562		)	(1,311		)	(1,828		)	General and administrative expenses	(775)			(667)			(1,378)			(1,311)
Underwriting income (loss)	$	364		$	(39,645	)	$	(2,635	)	$	(81,527	)	Underwriting income (loss)	$	9,702		$	364		$	11,492		$	(2,635)
Ratios													Ratios
Net loss and LAE ratio	50.8		%	97.8		%	66.8		%	91.8		%	Net loss and LAE ratio	(103.5)		%	50.8		%	(47.4)		%	66.8		%
Commission and other acquisition expense ratio	38.6		%	37.2		%	37.8		%	37.8		%	Commission and other acquisition expense ratio	38.5		%	38.6		%	39.0		%	37.8		%
General and administrative expense ratio	6.9		%	0.5		%	4.7		%	0.7		%	General and administrative expense ratio	12.2		%	6.9		%	11.6		%	4.7		%
Expense ratio	45.5		%	37.7		%	42.5		%	38.5		%	Expense ratio	50.7		%	45.5		%	50.6		%	42.5		%
Combined ratio	96.3		%	135.5		%	109.3		%	130.3		%	Combined ratio	(52.8)		%	96.3		%	3.2		%	109.3		%

The combined ratio decreased ~~39.2~~149.1 percentage points to ~~96.3%~~(52.8)% for the three months ended June 30, ~~2020~~2021 compared to ~~135.5%~~96.3% for the same period in ~~2019 partly due to~~2020. This was primarily driven by the impact of favorable prior year loss development of $11.9 million or 186.7 percentage points during the second quarter of 2021 compared to favorable development of $0.4 million or 4.3 percentage points during the second quarter of ~~2020 compared to the impact of adverse prior year development of $27.1 million or 24.3 percentage points for the same period in 2019.~~2020. Prior year favorable development in 2020 was primarily due to Workers Compensation partly offset by adverse development within Commercial Auto Liability. The adverse development in 2019 was primarily due to Commercial Auto Liability in accident years 2015 to 2018, partly offset by favorable development in Workers Compensation.

~~The combined ratio decreased 21.0 percentage points to 109.3%~~ for the six months ended June 30, 2020 compared to 130.3% for the same period in 2019 partly due to the impact of favorable prior year loss development of $0.4 million or 1.5 percentage points during the first half of 2020 compared to the impact of adverse prior year development of $35.2 million or 13.1 percentage points for the same period in 2019. Prior year favorable development in 2020 was primarily due to Workers Compensation partly

offset by adverse development within Commercial Auto Liability. The adverse development in 2019 was primarily due to Commercial Auto Liability in accident years 2014 to 2018, partly offset by favorable development in Workers Compensation.

~~Premiums~~—There were negative gross and net premiums written for the three and six months ended June 30, 2020 reflecting premium adjustments under the AmTrust Quota Share as of April 1, 2020. Furthermore, the termination of both the AmTrust Quota Share and the European Hospital Liability Quota Share as of January 1, 2019, led to no new business written under these contracts during 2020.

In 2019, the Partial Termination Amendment resulted in Maiden Reinsurance returning approximately $648.0 million in unearned premium to AII, or approximately $436.8 million net of applicable ceding commission and brokerage, which caused negative gross and net premiums written for the three and six months ended June 30, 2019.

~~The tables below show net premiums written by category for the three and six months ended June 30, 2020 and 2019:~~

For the Three Months Ended June 30, 2020 2019
($ in thousands) Total Total
Net Premiums Written
Small Commercial Business $ (6,394 ) $ 5,515
Specialty Program 477
(16,031 )
Specialty Risk and Extended Warranty 1,454
1,389
Total AmTrust Reinsurance $ (4,463 ) $ (9,127 )

For the Six Months Ended June 30, 2020 2019
($ in thousands) Total Total
Net Premiums Written
Small Commercial Business $ (6,394 ) $ (337,166 )
Specialty Program 477
(28,639 )
Specialty Risk and Extended Warranty 1,454
(219,799 )
Total AmTrust Reinsurance $ (4,463 ) $ (585,604 )

Net premiums earned decreased by $101.7 million or 91.2% and $240.9 million or 89.4% for the three and six months ended June 30, 2020, respectively, compared to the same respective periods in 2019 due to the terminations of the AmTrust Quota Share and European Hospital Liability Quota Share as of January 1, 2019. There were negative net premiums earned on Small Commercial Business for the three and six months ended June 30, 2020 due to premium adjustments and earned premium returns under the recent commutation of certain home warranty business under the AmTrust Quota Share as of April 1, 2020.

~~The tables below detail net premiums earned by category for the three and six months ended June 30, 2020 and 2019:~~

For the Three Months Ended June 30, 2020 2019 Change in
($ in thousands) Total % of Total Total % of Total $ %
Net Premiums Earned
Small Commercial Business $ (7,112 ) (72.7 )% $ 23,283
20.9 % $ (30,395 ) (130.5 )%
Specialty Program 426
4.4 % 30,326
27.2 % (29,900 ) (98.6 )%
Specialty Risk and Extended Warranty 16,467
168.3 % 57,905
51.9 % (41,438 ) (71.6 )%
Total AmTrust Reinsurance $ 9,781
100.0 % $ 111,514
100.0 % $ (101,733 ) (91.2 )%

For the Six Months Ended June 30, 2020 2019 Change in
($ in thousands) Total % of Total Total % of Total $ %
Net Premiums Earned
Small Commercial Business $ (6,173 ) (21.7 )% $ 62,738
23.3 % $ (68,911 ) (109.8 )%
Specialty Program 501
1.8 % 106,547
39.6 % (106,046 ) (99.5 )%
Specialty Risk and Extended Warranty 34,137
119.9 % 100,039
37.1 % (65,902 ) (65.9 )%
Total AmTrust Reinsurance $ 28,465
100.0 % $ 269,324
100.0 % $ (240,859 ) (89.4 )%

~~Net Loss and LAE~~— Net loss and LAE decreased by $104.1 million or 95.4% and $228.1 million or 92.3% for the three and six months ended June 30, 2020, respectively, compared to the same respective periods in 2019 due to significantly lower earned premiums as a result of the termination of both quota share agreements with AmTrust. Net loss and LAE ratios decreased to 50.8% and 66.8% for the three and six months ended June 30, 2020, respectively, compared to 97.8% and 91.8% for the same respective periods in 2019.

~~During~~ the three months ended June 30, ~~2020, the net loss~~2021 was driven by Workers Compensation and ~~LAE ratio decreased by 47.0 percentage points compared to the same period in 2019 primarily due to the following factors:~~

the Partial Termination Amendment caused significant changes in the mix of business being earned in 2020 compared to 2019. These changes resulted in a current year loss ratio which decreased relative to the same period in 2019 for the remaining in-force business; and

the impact of prior year loss development was favorable development of $0.4 million or 4.3 percentage points during the three months ended June 30, 2020 on the loss ratio, compared to the impact of adverse prior year loss development which was $27.1 million or 24.3 percentage points for the same period in 2019.Commercial Auto Liability. Prior year favorable development in 2020 was primarily due to Workers Compensation partly offset by adverse development within Commercial General Liability. ~~Prior~~Underwriting loss for the current accident year ~~adverse development~~during the three months ended June 30, 2021 was $2.2 million compared to an underwriting loss of $0.1 million for the current accident year in ~~2019 was due~~the same period in 2020.

The combined ratio decreased by 106.1 percentage points to ~~favorable development in Commercial Auto Liability in accident years 2014 to 2017, Specialty Risk and Hospital Liability, partly offset by favorable development in Workers Compensation.~~

~~During~~3.2% for the six months ended June 30, ~~2020, the net loss and LAE ratio decreased by 25.0 percentage points~~2021 compared to ~~the same period in 2019~~109.3% for 2020 primarily due to the ~~following factors:~~

~~the Partial Termination Amendment caused significant changes in the mix~~impact of ~~business being earned in 2020 compared to 2019. These changes resulted in a current year loss ratio which decreased relative to the same period in 2019 for the remaining in-force business; and~~

~~the impact of~~favorable prior year loss development ~~was~~of $17.4 million or 146.7 percentage points during 2021 compared to the impact of favorable prior year loss development of $0.4 million or 1.5 percentage points during ~~the six months ended June 30, 2020 on the loss ratio, compared~~2020. Prior year favorable development in 2021 was primarily due to ~~the impact of~~Workers Compensation and Commercial Auto

Liability partly offset by adverse ~~prior year loss~~ development ~~which was $35.2 million or 13.1 percentage points for the same period in 2019.~~within Hospital Liability. Prior year favorable development in 2020 was primarily due to Workers Compensation partly offset by adverse development within Commercial General Liability programs. Underwriting loss for the current accident year during the six months ended June 30, 2021 was $5.9 million compared to an underwriting loss of $3.1 million for the current accident year in the same period in 2020 which excludes the impact of prior period development in both respective periods.

Premiums—The tables below show net premiums written by category for the three and six months ended June 30, 2021 and 2020, respectively:


For the Three Months Ended June 30,	2021		2020
($ in thousands)	Total			Total
Net Premiums Written
Small Commercial Business	$	(1,594)			$	(6,394)
Specialty Program	(4)				477
Specialty Risk and Extended Warranty	(159)				1,454
Total AmTrust Reinsurance	$	(1,757)			$	(4,463)

For the Six Months Ended June 30,	2021		2020
($ in thousands)	Total			Total
Net Premiums Written
Small Commercial Business	$	(4,072)			$	(6,394)
Specialty Program	(29)				477
Specialty Risk and Extended Warranty	(118)				1,454
Total AmTrust Reinsurance	$	(4,219)			$	(4,463)

The negative gross and net premiums written for the three and six months ended June 30, 2021 reflect premium adjustments on Small Commercial Business policies in the AmTrust Quota Share. Furthermore, the termination of the AmTrust Quota Share and the European Hospital Liability Quota Share as of January 1, 2019 resulted in no new business written under these contracts since 2018.

Net premiums earned decreased by $3.4 million or 35.1% and $16.6 million, or 58.3% for the three and six months ended June 30, 2021, respectively, compared to the same respective periods in 2020 due to termination of the AmTrust Quota Share and European Hospital Liability Quota Share as of January 1, 2019.

There were negative premiums earned for the three and six months ended June 30, 2021 in Small Commercial Business due to premium adjustments on such policies in the AmTrust Quota Share. The tables below detail net premiums earned by category for the three and six months ended June 30, 2021 and 2020:


For the Three Months Ended June 30,	2021				2020				Change in
($ in thousands)	Total		% of Total		Total		% of Total		$		%
Net Premiums Earned
Small Commercial Business	$	(1,495)	(23.5)	%	$	(7,112)	(72.7)	%	$	5,617	(79.0)	%
Specialty Program	2		—	%	426		4.4	%	(424)		(99.5)	%
Specialty Risk and Extended Warranty	7,843		123.5	%	16,467		168.3	%	(8,624)		(52.4)	%
Total AmTrust Reinsurance	$	6,350	100.0	%	$	9,781	100.0	%	$	(3,431)	(35.1)	%

For the Six Months Ended June 30,	2021				2020				Change in
($ in thousands)	Total		% of Total		Total		% of Total		$		%
Net Premiums Earned
Small Commercial Business	$	(3,846)	(32.4)	%	$	(6,173)	(21.7)	%	$	2,327	(37.7)	%
Specialty Program	(16)		(0.1)	%	501		1.8	%	(517)		(103.2)	%
Specialty Risk and Extended Warranty	15,736		132.5	%	34,137		119.9	%	(18,401)		(53.9)	%
Total AmTrust Reinsurance	$	11,874	100.0	%	$	28,465	100.0	%	$	(16,591)	(58.3)	%

Net Loss and LAE— Net loss and LAE decreased by $11.5 million or 232.3% and $24.6 million or 129.6% for the three and six months ended June 30, 2021, respectively, compared to the same respective periods in 2020 due to the impact of

favorable prior year loss development of $11.9 million and $17.4 million, respectively. Net loss and LAE ratios decreased to (103.5)% and (47.4)% for the three and six months ended June 30, 2021, respectively, compared to 50.8% and 66.8% for the same respective periods in 2020.

During the three months ended June 30, 2021, the net loss and LAE ratio decreased by 154.3 percentage points compared to the same period in 2020 primarily due to the impact of favorable prior year loss development of $11.9 million or 186.7 percentage points on the loss ratio during the three months ended June 30, 2021. Prior year favorable development in 2021 was primarily driven by Workers Compensation and Commercial Auto Liability. Prior year favorable development in 2020 was primarily due to Workers Compensation partly offset by adverse development within Commercial General Liability programs.

During the six months ended June 30, 2021, the net loss and LAE ratio decreased by 114.2 points compared to the six months ended in ~~2019~~2020 due to the impact of favorable prior year loss development of $17.4 million or 146.7 points in 2021 compared to favorable prior year development of $0.4 million or 1.5 points in 2020. Prior year favorable development in 2021 was primarily due to favorable ~~development in~~Workers Compensation and Commercial Auto Liability ~~in accident years 2014 to 2018,~~development partly offset by adverse development within Hospital Liability. Prior year favorable development in 2020 was primarily due to Workers ~~Compensation.~~Compensation partly offset by adverse development within Commercial General Liability programs.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses decreased by ~~$37.7~~$1.3 million or ~~90.9%~~35.3% and ~~$91.1~~$6.1 million or ~~89.4%~~57.0% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019~~2020 due to ~~significantly~~ lower net earned premiums as a result of ~~the terminations of~~terminating both quota share agreements with AmTrust effective as of January 1, 2019.

The commission and other acquisition expense ~~ratio increased to 38.6%~~ratios were 38.5% and ~~remained flat at 37.8%~~39.0% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~37.2%~~38.6% and 37.8% for the same respective periods in ~~2019.~~2020.

General and Administrative Expenses — General and administrative expenses increased by $0.1 million or ~~18.7%~~16.2% and ~~decreased by $0.5~~$0.1 million or ~~28.3%~~5.1% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to the same respective periods in ~~2019.~~2020. The general and administrative expense ratios increased to ~~6.9%~~12.2% and ~~4.7%~~11.6% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~0.5%~~6.9% and ~~0.7%~~4.7% for the same respective periods in ~~2019~~2020 as a result of ~~significantly~~ lower earned premiums due to ~~the termination of~~terminating both quota share agreements with AmTrust as of January 1, 2019.

The overall expense ratio (including commission and other acquisition expenses) increased to ~~45.5%~~50.7% and ~~42.5%~~50.6% for the three and six months ended June 30, ~~2020,~~2021, respectively, compared to ~~37.7%~~45.5% and ~~38.5%~~42.5% for the same respective periods in ~~2019~~2020 primarily due to significantly lower earned premiums as discussed above.

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 and also place restrictions on the declaration and payment of dividends and other distributions.

As of June 30, ~~2020,~~2021, the Company had investable assets of ~~$2.5~~$2.0 billion compared to ~~$2.8~~$2.3 billion as of December 31, ~~2019.~~2020. Investable assets are the combined total of our investments, cash and cash equivalents (including ~~restricted)~~restricted cash), loan to a related party and funds withheld receivable. The decrease in our investable assets is primarily the ~~result of significant negative operating cash flows during six months ended June 30, 2020, particularly as a~~ result of our cessation of active reinsurance underwriting ~~including certain contract terminations that occurred~~ in 2018 and 2019 ~~that require the disbursement of~~which subsequently results in negative operating cash ~~and investments~~flows to settle claim payments from the run-off of the liabilities from that reinsurance portfolio in ~~2020.~~2021.

The regulatory and liquidity requirements of the Company's operating segments 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, ~~2019,~~2020, that was filed with the SEC on March ~~18, 2020.~~15, 2021.

As previously indicated, Maiden Reinsurance re-domesticated from Bermuda to Vermont on March 16, 2020. We ~~expect~~continue to be actively engaged with the 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.~~

DFR, including 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 ~~Company's investment portfolio~~Investment Policy, as approved and as may be ~~adversely impacted by unfavorable market conditions caused by the COVID-19 pandemic~~amended, maintains our established investment management and 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. In addition, wegovernance practices.

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. Finally, while we have had limited impacts from the effects of COVID-19 on our financial condition to date, the Company's investment portfolio could be adversely impacted by unfavorable market conditions caused by the pandemic should it continue longer than anticipated.

Operating, investing and financing cash flows

Our sources of funds historically have consisted of premium receipts net of commissions and brokerage, investment income, net proceeds from capital raising activities, 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, 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 ~~in the past two years.~~since 2018. As previously noted, the Strategic Review resulted in a series of transactions that ~~have~~ materially reduced our balance sheet risk and ~~have~~ transformed our operations. As a result of the transactions entered into from the Strategic Review, we are not engaged in any active underwriting of reinsurance business thus our net premiums written will continue to be materially lower ~~in 2020~~ and investment related income will become a significantly larger portion of our total revenues. This has caused significant negative operating cash ~~flow, particularly~~flows as we run off the AmTrust Reinsurance reserves as shown in the cash flows table further below.

As noted in our Business Strategy, in November 2020, we formed GLS which will specialize in providing a full range of legacy services to small insurance entities, We believe the formation of GLS is highly complementary to our overall longer-term strategy and will not only enhance 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. 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 ~~this~~the trend of negative overall cash flows to continue to reduce our asset base going forward ~~for the rest of 2020~~into 2021 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 ~~loss adjustment expenses.~~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. We generally expect negative operating cash flows to be partly offset by positive investing cash flows. Overall, we continue to expect our cash flows to be sufficient to meet our cash requirements and to operate our business.

~~At June 30, 2020 and December 31, 2019, unrestricted cash and cash equivalents and unrestricted fixed maturity investments were $401.8 million and $435.0 million, respectively.~~ The Company’s management believes its current sources of liquidity are adequate to meet its cash requirements for the next twelve ~~months.~~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. At June 30, 2021 and December 31, 2020, unrestricted cash and cash equivalents and unrestricted fixed maturity investments were $189.3 million and $269.2 million, respectively.

The decrease in unrestricted balances during 2021 was largely the result of $124.7 million utilized for the 2021 Preference Share Repurchases, $21.6 million utilized for net purchases of other investments, and $17.9 million utilized for net purchases of equity method investments, as described further in the discussion on investing and financing cash flows below. The table below summarizes our operating, investing and financing cash flows for the six months ended June 30, ~~2020~~2021 and ~~2019:~~2020:


For the Six Months Ended June 30,	2020			2019			For the Six Months Ended June 30,	2021		2020
	($ in thousands)							($ in thousands)
Operating activities	$	(419,152	)	$	(503,657	)	Operating activities	$	(185,784)	$	(419,152)
Investing activities	447,969			630,908			Investing activities	251,005		447,969
Financing activities	(1		)	(13		)	Financing activities	(127,183)		(1)
Effect of exchange rate changes on foreign currency cash	1,359			(177		)	Effect of exchange rate changes on foreign currency cash	(107)		1,359
Total increase in cash, restricted cash and cash equivalents	30,175			127,061
Less: change in cash, restricted cash and cash equivalents of discontinued operations	—			(6,113		)
Total increase in cash, restricted cash and cash equivalents of continuing operations	$	30,175		$	133,174
Total (decrease) increase in cash, restricted cash and cash equivalents							Total (decrease) increase in cash, restricted cash and cash equivalents	$	(62,069)	$	30,175



Bermuda			98-0570192
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)
94 Pitts Bay Road
Pembroke
Bermuda			HM08
(Address of principal executive offices)			(Zip Code)

~~INDEX~~

		~~Page~~


		Page
PART I - Financial Information
Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of June ~~30, 2020~~ 3 0 , 2021 (unaudited) and December 31, ~~2019~~2020 (audited)	3

	Condensed Consolidated Statements of Income for the Three Months and Six Months Ended June ~~30,~~ 3 0 , 2021 and 2020 ~~and 2019~~ (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income for the Three Months and Six Months Ended June ~~30,~~ 3 0 , 2021 and 2020 ~~and 2019~~ (unaudited)	5

	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three Months and Six Months Ended June ~~30,~~ 3 0 , 2021 and 2020 ~~and 2019~~ (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June ~~30,~~ 3 0 , 2021 and 2020 ~~and 2019~~ (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3537

Item 4.	Controls and Procedures	6468

PART II - Other Information

Item 1.	Legal Proceedings	6569

Item 1A.	Risk Factors	6569

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6669

Item 3.	Defaults Upon Senior Securities	6669

Item 4.	Mine Safety Disclosures	6670

Item 5.	Other Information	6770

Item 6.	Exhibits	6770

	Signatures	6871


	June 30, 2020			December 31, 2019				June 30, 2021		December 31, 2020
ASSETS	(Unaudited)			(Audited)			ASSETS	(Unaudited)		(Audited)
Investments:							Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost 2020 - $1,422,298; 2019 - $1,813,426)	$	1,439,563		$	1,835,518
Fixed maturities, available-for-sale, at fair value (amortized cost 2021 - $911,547; 2020 - $1,163,923)							Fixed maturities, available-for-sale, at fair value (amortized cost 2021 - $911,547; 2020 - $1,163,923)	$	938,685	$	1,213,411
Equity securities, at fair value (cost 2021 - $1,000)							Equity securities, at fair value (cost 2021 - $1,000)	4,905		0
Equity method investments							Equity method investments	60,113		39,886
Other investments	36,054			31,748			Other investments	88,238		67,010
Total investments	1,475,617			1,867,266			Total investments	1,091,941		1,320,307
Cash and cash equivalents	56,583			48,197			Cash and cash equivalents	42,109		74,040
Restricted cash and cash equivalents	80,870			59,081			Restricted cash and cash equivalents	31,648		61,786
Accrued investment income	11,868			18,331			Accrued investment income	7,872		11,240
Reinsurance balances receivable, net (includes $923 from related parties in 2020)	13,268			12,181
Reinsurance balances receivable, net							Reinsurance balances receivable, net	2,372		5,777
Reinsurance recoverable on unpaid losses	617,496			623,422			Reinsurance recoverable on unpaid losses	565,549		592,571
Loan to related party	167,975			167,975			Loan to related party	167,975		167,975
Deferred commission and other acquisition expenses (includes $56,159 and $68,433 from related parties in 2020 and 2019, respectively)	63,533			77,356
Funds withheld receivable (includes $668,188 and $632,305 from related parties in 2020 and 2019, respectively)	715,623			684,441
Deferred commission and other acquisition expenses (includes $39,730 and $45,732 from related parties in 2021 and 2020, respectively)							Deferred commission and other acquisition expenses (includes $39,730 and $45,732 from related parties in 2021 and 2020, respectively)	42,708		51,903
Funds withheld receivable (includes $604,424 and $603,093 from related parties in 2021 and 2020, respectively)							Funds withheld receivable (includes $604,424 and $603,093 from related parties in 2021 and 2020, respectively)	644,473		654,805
Other assets	10,603			9,946			Other assets	10,123		8,051

Total assets	$	3,213,436		$	3,568,196		Total assets	$	2,606,770	$	2,948,455
LIABILITIES							LIABILITIES
Reserve for loss and loss adjustment expenses (includes $1,920,745 and $2,272,418 from related parties in 2020 and 2019, respectively)	$	2,071,222		$	2,439,907
Unearned premiums (includes $156,869 and $189,797 from related parties in 2020 and 2019, respectively)	182,121			220,269
Reserve for loss and loss adjustment expenses (includes $1,533,264 and $1,727,193 from related parties in 2021 and 2020, respectively)							Reserve for loss and loss adjustment expenses (includes $1,533,264 and $1,727,193 from related parties in 2021 and 2020, respectively)	$	1,674,590	$	1,893,299
Unearned premiums (includes $106,645 and $122,737 from related parties in 2021 and 2020, respectively)							Unearned premiums (includes $106,645 and $122,737 from related parties in 2021 and 2020, respectively)	118,557		144,271
Deferred gain on retroactive reinsurance	111,540			112,950			Deferred gain on retroactive reinsurance	54,254		74,941
Liability for securities purchased	44,996			—			Liability for securities purchased	40,093		0
Accrued expenses and other liabilities (includes $8,137 and $20,049 from related parties in 2020 and 2019, respectively)	17,802			32,444
Accrued expenses and other liabilities (includes $45,308 and $35,719 from related parties in 2021 and 2020, respectively)							Accrued expenses and other liabilities (includes $45,308 and $35,719 from related parties in 2021 and 2020, respectively)	59,828		53,002
Senior notes - principal amount	262,500			262,500			Senior notes - principal amount	262,500		262,500
Less: unamortized debt issuance costs	7,484			7,592			Less: unamortized debt issuance costs	7,264		7,374
Senior notes, net	255,016			254,908			Senior notes, net	255,236		255,126

Total liabilities	2,682,697			3,060,478			Total liabilities	2,202,558		2,420,639
Commitments and Contingencies							Commitments and Contingencies	0		0
EQUITY							EQUITY
Preference shares	465,000			465,000			Preference shares	181,384		394,310
Common shares ($0.01 par value; 89,732,851 and 88,161,638 shares issued in 2020 and 2019, respectively; 84,718,837 and 83,148,458 shares outstanding in 2020 and 2019, respectively)	897			882
Common shares ($0.01 par value; 92,233,783 and 89,815,175 shares issued in 2021 and 2020, respectively; 86,420,221 and 84,801,161 shares outstanding in 2021 and 2020, respectively)							Common shares ($0.01 par value; 92,233,783 and 89,815,175 shares issued in 2021 and 2020, respectively; 86,420,221 and 84,801,161 shares outstanding in 2021 and 2020, respectively)	922		898
Additional paid-in capital	752,896			751,327			Additional paid-in capital	767,452		756,122
Accumulated other comprehensive income	9,201			17,836			Accumulated other comprehensive income	5,723		23,857
Accumulated deficit	(665,721		)	(695,794		)	Accumulated deficit	(517,376)		(615,837)
Treasury shares, at cost (5,014,014 and 5,013,180 shares in 2020 and 2019, respectively)	(31,534		)	(31,533		)
Treasury shares, at cost (5,813,562 and 5,014,014 shares in 2021 and 2020, respectively)							Treasury shares, at cost (5,813,562 and 5,014,014 shares in 2021 and 2020, respectively)	(33,893)		(31,534)
Total shareholders’ equity	530,739			507,718			Total shareholders’ equity	404,212		527,816

Total liabilities and equity	$	3,213,436		$	3,568,196		Total liabilities and equity	$	2,606,770	$	2,948,455


For the Six Months Ended June 30,	2020			2019			For the Six Months Ended June 30,	2021		2020
Cash flows from operating activities							Cash flows from operating activities
Net income (loss)	$	30,073		$	(52,049	)
Less: net loss from discontinued operations	—			22,123
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Net income							Net income	$	17,398	$	30,073

Adjustments to reconcile net income to net cash flows from operating activities:							Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation, amortization and share-based compensation	4,004			4,388			Depreciation, amortization and share-based compensation	6,840		4,004
Interest in income of equity method investments							Interest in income of equity method investments	(5,722)		0
Net realized gains on investment	(19,913		)	(12,985		)	Net realized gains on investment	(8,950)		(19,913)
Total other-than-temporary impairment losses	1,506			—			Total other-than-temporary impairment losses	0		1,506
Foreign exchange and other gains	(5,902		)	(6,186		)	Foreign exchange and other gains	(1,954)		(5,902)
Changes in assets – (increase) decrease:							Changes in assets – (increase) decrease:
Reinsurance balances receivable, net	(10,196		)	(1,191		)	Reinsurance balances receivable, net	4,395		(10,196)
Reinsurance recoverable on unpaid losses	4,294			(242		)	Reinsurance recoverable on unpaid losses	6,366		4,294
Accrued investment income	6,413			5,526			Accrued investment income	3,290		6,413
Deferred commission and other acquisition expenses	13,662			136,686			Deferred commission and other acquisition expenses	9,101		13,662
Funds withheld receivable	(13,416		)	(81,649		)	Funds withheld receivable	8,672		(13,416)
Other assets	(9,316		)	(7,910		)	Other assets	(1,133)		(9,316)
Changes in liabilities – increase (decrease):							Changes in liabilities – increase (decrease):
Reserve for loss and loss adjustment expenses	(361,082		)	(833		)	Reserve for loss and loss adjustment expenses	(207,565)		(361,082)
Unearned premiums	(37,634		)	(459,179		)	Unearned premiums	(25,340)		(37,634)

Accrued expenses and other liabilities	(21,645		)	(48,251		)	Accrued expenses and other liabilities	8,818		(21,645)
Net cash used in continuing operations	(419,152		)	(501,752		)
Net cash used in discontinued operations	—			(1,905		)

Net cash used in operating activities	(419,152		)	(503,657		)	Net cash used in operating activities	(185,784)		(419,152)
Cash flows from investing activities:							Cash flows from investing activities:
Purchases of fixed maturities	(245,331		)	(395,640		)	Purchases of fixed maturities	(91,585)		(245,331)
Purchases of other investments	(4,475		)	(5,290		)	Purchases of other investments	(21,852)		(4,475)
Purchases of equity method investments							Purchases of equity method investments	(21,309)		0
Proceeds from sales of fixed maturities	405,501			709,615			Proceeds from sales of fixed maturities	206,354		405,501
Proceeds from maturities, paydowns and calls of fixed maturities	292,780			324,480			Proceeds from maturities, paydowns and calls of fixed maturities	175,363		292,780
Proceeds from sale and redemption of other investments	92			580			Proceeds from sale and redemption of other investments	228		92
Other, net	(598		)	3,276
Net cash provided by investing activities for continuing operations	447,969			637,021
Net cash used in investing activities for discontinued operations	—			(6,113		)
Proceeds from sale and redemption of equity method investments							Proceeds from sale and redemption of equity method investments	3,384		0
Distributions from equity securities							Distributions from equity securities	441		0
Others, net							Others, net	(19)		(598)

Net cash provided by investing activities	447,969			630,908			Net cash provided by investing activities	251,005		447,969
Cash flows from financing activities:							Cash flows from financing activities:
Repurchase of common shares	(1		)	(13		)	Repurchase of common shares	(2,359)		(1)

Repurchase of preference shares							Repurchase of preference shares	(124,658)		0

Cash settlement of restricted shares granted							Cash settlement of restricted shares granted	(166)		0
Net cash used in financing activities	(1		)	(13		)	Net cash used in financing activities	(127,183)		(1)
Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents	1,359			(177		)	Effect of exchange rate changes on foreign currency cash, restricted cash and equivalents	(107)		1,359
Net increase in cash, restricted cash and cash equivalents	30,175			127,061
Net (decrease) increase in cash, restricted cash and cash equivalents							Net (decrease) increase in cash, restricted cash and cash equivalents	(62,069)		30,175
Cash, restricted cash and cash equivalents, beginning of period	107,278			337,102			Cash, restricted cash and cash equivalents, beginning of period	135,826		107,278
Cash, restricted cash and cash equivalents, end of period	137,453			464,163			Cash, restricted cash and cash equivalents, end of period	$	73,757	$	137,453

Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets:							Reconciliation of cash and restricted cash reported within Condensed Consolidated Balance Sheets:
Cash and cash equivalents, end of period	$	56,583		$	82,465		Cash and cash equivalents, end of period	$	42,109	$	56,583
Restricted cash and cash equivalents, end of period	80,870			381,698			Restricted cash and cash equivalents, end of period	31,648		80,870
Total cash, restricted cash and cash equivalents, end of period	$	137,453		$	464,163		Total cash, restricted cash and cash equivalents, end of period	$	73,757	$	137,453
Non-cash investing activities
Investments transferred out related to Partial Termination Amendment	$	—		$	280,670
Investments transferred out related to funds withheld arrangement with AmTrust	—			571,396
Investments transferred out related to discontinued operations	—			65,400


	June 30, 2021		December 31, 2020
Fixed maturities	$	27,138	$	49,488
Equity method investments	(3,419)		0
Total net unrealized gains	23,719		49,488
Deferred income tax	(87)		(131)
Net unrealized gains, net of deferred income tax	$	23,632	$	49,357
Change, net of deferred income tax	$	(25,725)	$	27,361



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



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



For the Six Months Ended June 30, 2019	Diversified Reinsurance			AmTrust Reinsurance			Other			Total
Gross premiums written	$	26,582		$	(585,604	)	$	—		$	(559,022	)
Net premiums written	$	23,665		$	(585,604	)	$	—		$	(561,939	)
Net premiums earned	$	47,764		$	269,324		$	—		$	317,088
Other insurance revenue	1,566			—			—			1,566
Net loss and LAE	(26,888		)	(247,158		)	(204		)	(274,250		)
Commission and other acquisition expenses	(17,408		)	(101,865		)	—			(119,273		)
General and administrative expenses	(5,123		)	(1,828		)	—			(6,951		)
Underwriting loss	$	(89	)	$	(81,527	)	$	(204	)	(81,820		)
Reconciliation to net loss from continuing operations
Net investment income and realized gains on investment										76,129
Interest and amortization expenses										(9,659		)
Foreign exchange and other gains										6,186
Other general and administrative expenses										(21,826		)
Income tax benefit										1,064
Net loss from continuing operations										$	(29,926	)

Net loss and LAE ratio⁽¹⁾	54.5		%	91.8		%				86.1		%
Commission and other acquisition expense ratio⁽²⁾	35.3		%	37.8		%				37.4		%
General and administrative expense ratio⁽³⁾	10.4		%	0.7		%				9.0		%
Expense ratio⁽⁴⁾	45.7		%	38.5		%				46.4		%
Combined ratio⁽⁵⁾	100.2		%	130.3		%				132.5		%



June 30, 2020	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	157,302	$	2,570,738	$	2,728,040
Corporate assets	—		—		485,396
Total Assets	$	157,302	$	2,570,738	$	3,213,436

December 31, 2019	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	167,845	$	2,843,802	$	3,011,647
Corporate assets	—		—		556,549
Total Assets	$	167,845	$	2,843,802	$	3,568,196


	June 30, 2021		December 31, 2020
Restricted cash – third party agreements	$	20,425	$	20,547
Restricted cash – related party agreements	11,223		41,239
Total restricted cash	31,648		61,786
Restricted investments – in trust for third party agreements at fair value (amortized cost: 2021 – $62,589; 2020 – $63,253)	62,560		63,281
Restricted investments – in trust for related party agreements at fair value (amortized cost: 2021 – $742,157; 2020 – $913,466)	765,144		954,988
Restricted investments – liability for investments purchased for related party agreements	(36,215)		0
Total restricted investments	791,489		1,018,269
Total restricted cash and investments	$	823,137	$	1,080,055



June 30, 2020	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	$	211,183		$	—		$	—		$	—		$	211,183
U.S. agency bonds – mortgage-backed	—			435,383			—			—			435,383
Non-U.S. government and supranational bonds	—			7,565			—			—			7,565
Asset-backed securities	—			184,010			—			—			184,010
Corporate bonds	—			601,422			—			—			601,422
Other investments	—			—			2,800			2,908			5,708
Total	$	211,183		$	1,228,380		$	2,800		$	2,908		$	1,445,271
As a percentage of total assets	6.6		%	38.2		%	0.1		%	0.1		%	45.0		%


~~(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.


	Ratings(1)
June 30, 2021	AAA, AA+, AA, AA-		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
Corporate bonds									($ in thousands)
Basic Materials	—	%	1.2	%	0.8	%	—	%	$	10,404	2.0	%
Communications	—	%	1.2	%	2.8	%	—	%	20,654		4.0	%
Consumer	—	%	3.1	%	23.6	%	2.3	%	147,108		29.0	%
Energy	—	%	9.8	%	3.5	%	2.8	%	82,035		16.1	%
Financial Institutions	6.6	%	20.6	%	14.4	%	1.3	%	217,477		42.9	%
Industrials	—	%	0.6	%	0.7	%	1.0	%	11,686		2.3	%
Technology	—	%	2.9	%	0.8	%	—	%	18,682		3.7	%
Total	6.6	%	39.4	%	46.6	%	7.4	%	$	508,046	100.0	%


														Ratings(1)
	Ratings⁽¹⁾
June 30, 2020	AAA, AA+, AA, AA-		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
December 31, 2020													December 31, 2020	AAA, AA+, AA, AA-		A+, A, A-		BBB+, BBB, BBB-		BB+ or lower		Fair Value		% of Corporate bonds portfolio
Corporate bonds									($ in thousands)				Corporate bonds									($ in thousands)
Basic Materials	—	%	0.9	%	1.5	%	—	%	$	14,954	2.4	%	Basic Materials	—	%	1.0	%	1.4	%	—	%	$	15,637	2.4	%
Communications	—	%	1.0	%	4.7	%	1.8	%	44,558		7.5	%	Communications	—	%	1.0	%	4.6	%	1.6	%	46,167		7.2	%
Consumer	—	%	1.4	%	26.1	%	1.5	%	174,554		29.0	%	Consumer	—	%	2.0	%	21.7	%	1.8	%	164,033		25.5	%
Energy	2.6	%	4.8	%	4.0	%	1.5	%	77,673		12.9	%	Energy	2.5	%	6.3	%	3.0	%	2.2	%	89,984		14.0	%
Financial Institutions	6.6	%	22.2	%	12.6	%	0.9	%	254,517		42.3	%	Financial Institutions	7.2	%	23.8	%	13.0	%	1.0	%	288,649		45.0	%
Industrials	—	%	0.4	%	2.9	%	—	%	19,613		3.3	%	Industrials	—	%	0.9	%	1.2	%	0.8	%	18,494		2.9	%
Technology	—	%	1.9	%	0.7	%	—	%	15,553		2.6	%	Technology	—	%	2.4	%	0.6	%	—	%	19,368		3.0	%
Total	9.2	%	32.6	%	52.5	%	5.7	%	$	601,422	100.0	%	Total	9.7	%	37.4	%	45.5	%	7.4	%	$	642,332	100.0	%


June 30, 2021	Fair Value		% of Holdings		Rating(1)
	($ in thousands)
Electricite de France, 4.625%, Due 9/11/2024	$	17,601	1.9	%	A-
Nordea Bank ABP, 0.875% Due 6/26/2023	13,209		1.4	%	A
Brookfield Asset Management Inc., 4.00% Due 1/15/2025	13,127		1.4	%	A-
Deutsche Bank AG, 1.25%, Due 9/8/2021	13,080		1.4	%	BBB-
Anheuser-Busch INBEV NV, 2.875% Due 9/25/2024	13,012		1.4	%	BBB+
Bayer US Finance LLC, 3.375% Due 10/8/2024	12,891		1.4	%	BBB
Carlsberg Breweries A/S, 2.5%, Due 5/28/2024	12,690		1.4	%	BBB
Deutsche Bank AG (NY Branch), 3.7%, Due 5/30/2024	11,786		1.3	%	BBB-
Total Energies Capital International SA, 3.75%, Due 4/10/2024	10,858		1.2	%	A+
Thompson Reuters Corp, 4.3% Due 11/23/23	10,729		1.1	%	BBB
Total	$	128,983	13.7	%


($ in thousands except share and per share data)	June 30, 2021		December 31, 2020
Ending common shareholders’ equity	$	222,828	$	133,506
Proceeds from assumed conversion of dilutive options	10		10
Numerator for diluted book value per common share calculation	$	222,838	$	133,516

Common shares outstanding	86,420,221		84,801,161
Shares issued from assumed conversion of dilutive options and restricted shares	555,622		1,489,064
Denominator for diluted book value per common share calculation	86,975,843		86,290,225

Book value per common share	$	2.58	$	1.57
Diluted book value per common share	2.56		1.55



For the Three Months Ended June 30, 2020	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)
April 1, 2020 - April 30, 2020	—	$	—	—	$	74,245
May 1, 2020 - May 31, 2020	834	1.13		—	74,245
June 1, 2020 - June 30, 2020	—	—		—	74,245
Total	834	$	1.13	—	74,245



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 June 30, ~~2020,~~2021 formatted in ~~iXBRL (Inline 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.


			MAIDEN HOLDINGS, LTD.
			By:
August 9, 2021				/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:~~
~~August 14, 2020~~		~~/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~~