September 15, 2017

 

 

Dear Mr. Rosenberg:

 

We submit this letter in response to comments received from the staff of the Securities and Exchange Commission (the “Staff”) in its letter dated September 1, 2017, relating to the Form 10-K for the fiscal year ended December 31, 2016, (the “Form 10-K”) of Maiden Holdings, Ltd. (the “Company”).

 

Set forth below is our response to the Staff comment. For your convenience, we have included the comment from the Staff in italicized type and have followed with our response.

 

Notes to Consolidated Financial Statements

Note 9. Reserve for Loss and Loss Adjustment Expenses, page F-32

 

1.

Given that you possess detailed actuarial data for claims in your AmTrust Reinsurance segment which are used to establish AmTrust reserves, please provide us separate tables with claims information for the individual lines of business within this segment. The lines of business included and reported within this segment appear to possess dissimilar characteristics that support the case for further disaggregation. Please include an explanation of the additional assumptions and estimations you make in providing this disaggregated data. We note that you report prior period claims development on a line of business basis: for example, the 2016 development was related to program commercial auto as well as program general liability.

 

 

As indicated in the Company’s August 1, 2017 letter, Maiden does not receive complete loss details by accident year or by line of business in the cession statements provided by AmTrust for its two inforce contracts but does currently receive separately much more detailed actuarial data including accident year detail which is used to establish AmTrust reserves. The amount of detail included in the actuarial data has increased over time. Since the tables require historical data which was not provided, creating tables showing historical data is not possible without making significant assumptions. The actuarial data is not segregated in the same manner as cession statements, but rather in individual lines of business such as Workers Compensation, General Liability, Commercial Auto, etc. The reserves resulting from the actuarial review of this data are recorded in the same level of detail as the cession statements received from AmTrust.

 

We are enclosing paid and incurred loss triangles for the following lines of business based upon the Company’s 12/31/2016 reserves for the AmTrust segment:

 

·

Master Quota Share Workers’ Compensation

·

Master Quota Share Commercial Auto Liability

·

Master Quota Share General Liability

·

Hospital Liability

·

Property, Auto Physical Damage and Miscellaneous

 

 

 

In addition to allocating to accident year to complete the tables in the Company’s Form 10-K, reserves and paid losses are now further allocated to the lines of business using the following assumptions:

 

·

Paid losses and case reserves are allocated based on the information provided which underlies the cession statements from AmTrust. This information does not have complete detail by line of business, but was used to create a distribution of paid and incurred losses which we then used to allocate the inception-to-date paid loss and case reserves at each calendar year end. The assumption is that the missing information follows the same distribution as the information provided.

·

IBNR was allocated based on the case reserves determined from the previous allocation by accident year and line of business.

 

As indicated in the Company’s August 1, 2017 letter, we do not believe these allocated results would improve the understanding of Maiden’s reserves.

 

2.

Given that you disclose that additional data detailing items such as class of business, state, claim counts, frequency and severity is available for your claims included within your Diversified Reinsurance segment, and you state that the majority of the exposure in the underlying book of business allows for a significant amount of credibility in using parameters derived from historical experience to calculate reserve estimates, please provide us with separate tables with claims information for the individual lines of business within this segment. At a minimum presenting property claims information separately from casualty appears to be required since such claims likely possess dissimilar characteristics. We also note from your response that the ceding commission adjustment based upon the loss performance of the contract. In addition, we note that you report prior period claims development on a line of business basis: for example, for the six months period ended on June 30, 2017, the development was related to change in the actuarial assumptions for a large German personal auto account in the international personal auto line of business.

 

As a reinsurer, Maiden does not have the ability to broadly report details by class of business, by state or claim counts, frequency and severity. We are limited to the information provided by the cedent and the way we have historically recorded that information. For our small amount of historical direct business, where we have all of the data, we have disclosed line of business by state in our statutory filings. We exited most of the direct business in 2013 and currently have no inforce direct business in the US. We also disclose the domiciliary state of each of our cedents in statutory filings.

 

As indicated in the Company’s August 1, 2017 letter, the most difficult disaggregation is between the property and casualty lines in multi-line contracts due to the way the accounts are reported to Maiden and due to the way we account for these contracts. As indicated below, reserves are analyzed by cedent and are not recorded by line within cedent other than on an allocated basis. Other complications include refinements of the allocations of reserve changes by underwriting year to accident year as well as the impact of adjustable commissions on loss reserves. For example, an initial booked loss ratio for a quota share may have a higher loss ratio initially which changes in the following year, but commission expense increases. This would show as favorable development in these tables but would produce no impact to the Company’s financials. While we again caution that the disaggregation is of limited value due to the significant allocations which need to be made, in response to your request, we are including separate tables for the following components of the Diversified segment:

 

·

Diversified US Casualty

·

Diversified US Property

·

Accident & Health

·

International Insurance Services

 

 

 

The process and assumptions used in the allocation process are as follows:

 

·

For each contract, the expected distribution by line of business is established during contract pricing and remains unchanged throughout the underwriting year.

·

Reserving is completed for each cedent for each underwriting year, in some cases by line of business, but in all cases aggregated back to cedent/contract level for the recording of reserves.

·

The process of breaking premium, paid losses, case reserves and IBNR all use this “priced” distribution for the purpose of allocating by line of business by accident year.

 

 

The following Diversified components are not included in the Diversified tables:

·

Bermuda runoff treaty and facultative

·

New European treaty division (first contract written 1/1/2016)

 

 

The 12/31/2016 reserves for the items excluded were $8.8 million as the Company views them to be immaterial.

 

I am available to discuss any of these comments at your convenience.

  

 

Sincerely,

 

 

/s/ Karen Schmitt

 

Karen Schmitt

Chief Financial Officer

Maiden Holdings, LTD.

 

 

 

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

AmTrust Reinsurance Master Quota Share Workers Compensation		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	27,543			$	27,023			$	44,374			$	30,325			$	31,329			$	31,753			$	9
2008		79,898				78,686				81,097				85,159				87,480				85,787				447
2009		104,121				100,371				103,949				104,504				106,294				107,935				44
2010		106,061				100,232				104,495				107,044				110,947				124,660				2,111
2011		155,871				118,422				119,955				123,423				119,714				131,699				2,761
2012						186,296				156,558				172,955				163,781				172,769				1,261
2013										315,984				251,246				232,668				252,850				11,543
2014														450,526				425,250				402,326				35,865
2015																		528,481				504,115				92,018
2016																						604,404				289,515
Total																						$	2,418,298			$	435,574
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	28,653			$	29,763			$	31,846			$	30,507			$	30,310			$	31,016
2008		64,541				70,802				75,448				75,753				76,103				77,739
2009		80,685				96,652				99,215				98,567				99,320				100,887
2010		62,085				84,917				96,786				100,769				104,004				113,215
2011		26,278				68,751				92,560				104,119				118,396				115,906
2012						32,741				80,274				117,119				141,451				152,037
2013										50,015				123,030				175,150				203,955
2014														68,925				197,563				279,159
2015																		93,450				257,914
2016																						109,762
Total																						1,441,590
Total net reserves																						$	976,708

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

  

AmTrust Reinsurance Master Quota Share General Liability		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	6,590			$	7,446			$	(9,206	)		$	8,332			$	8,490			$	8,897			$	6
2008		27,257				29,471				31,073				31,648				32,818				33,869				36
2009		19,428				30,571				32,400				31,667				31,827				33,448				19
2010		16,436				28,750				34,428				37,167				37,894				38,570				902
2011		15,154				25,682				35,006				39,199				42,212				46,508				1,258
2012						22,791				30,787				40,023				47,414				50,296				639
2013										32,619				41,814				54,146				60,099				5,426
2014														37,676				59,579				61,431				10,366
2015																		56,657				75,926				20,958
2016																						52,510				27,061
Total																						$	461,554			$	66,671
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	5,659			$	6,616			$	7,499			$	8,153			$	7,967			$	8,379
2008		21,134				25,558				29,164				32,163				32,687				33,225
2009		8,790				16,102				21,877				25,635				27,902				30,329
2010		5,204				11,499				19,343				25,787				29,757				33,675
2011		2,234				6,019				12,310				22,645				32,786				39,309
2012						3,696				12,011				17,726				28,827				39,781
2013										4,442				10,382				24,731				37,114
2014														3,474				13,946				25,834
2015																		6,347				19,852
2016																						6,275
Total																						273,773
Total net reserves																						$	187,781

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

AmTrust Reinsurance Master Quota Share Commercial Auto Liability		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	8,061			$	8,604			$	9,084			$	9,685			$	9,830			$	10,107			$	3
2008		27,050				28,389				29,297				32,305				31,594				33,668				1
2009		22,493				26,802				30,022				29,430				29,315				30,368				2
2010		26,270				31,105				33,598				34,635				35,442				39,754				156
2011		23,686				23,379				28,530				30,244				30,428				34,228				330
2012						27,340				31,288				40,837				43,247				48,672				272
2013										41,132				46,291				50,543				60,675				2,689
2014														50,496				64,308				73,852				8,498
2015																		75,417				93,807				18,452
2016																						100,752				46,702
Total																						$	525,883			$	77,105
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	7,729			$	8,576			$	9,680			$	9,368			$	9,615			$	9,829
2008		24,986				28,570				30,743				33,222				32,888				33,647
2009		16,292				21,697				25,462				28,764				29,787				30,111
2010		14,380				21,637				29,103				35,556				36,281				38,905
2011		4,544				12,225				19,049				25,450				30,888				32,341
2012						4,866				13,604				26,076				36,162				44,206
2013										7,351				20,168				35,675				49,282
2014														8,379				23,774				44,668
2015																		14,975				44,438
2016																						20,960
Total																						348,387
Total net reserves																						$	177,496

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

AmTrust Reinsurance Hospital Liability		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	—			$	—			$	—			$	—			$	—			$	—			$	—
2008		—				—				—				—				—				—				—
2009		—				—				—				—				—				—				—
2010		—				—				—				—				—				—				—
2011		268				42,944				45,643				57,703				69,731				49,692				(7,912		)
2012						77,017				78,771				73,100				77,196				70,430				(32,996		)
2013										76,596				68,788				75,064				72,429				(29,878		)
2014														67,827				45,427				68,812				(1,085		)
2015																		52,910				61,768				17,622
2016																						57,656				37,287
Total																						$	380,787			$	(16,962	)
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	—			$	—			$	—			$	—			$	—			$	—
2008		—				—				—				—				—				—
2009		—				—				—				—				—				—
2010		—				—				—				—				—				—
2011		1,333				10,470				18,393				34,048				37,051				42,339
2012						—				16,144				39,477				50,117				63,232
2013										1,949				16,816				33,929				49,187
2014														530				6,738				22,907
2015																		47				6,214
2016																						368
Total																						184,247
Total net reserves																						$	196,540

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars) 

 

 

AmTrust Reinsurance Other (Including Retrocessional Programs)		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	25,642			$	24,131			$	22,796			$	22,189			$	22,208			$	22,190			$	—
2008		91,451				87,914				83,200				89,245				90,732				92,685				961
2009		80,608				80,387				82,421				83,982				85,250				86,078				1,916
2010		130,461				125,031				122,981				123,875				124,878				126,987				7
2011		147,598				141,760				138,781				139,756				139,776				144,076				(1		)
2012						159,850				153,366				154,069				151,195				154,965				48
2013										181,740				168,265				164,103				165,564				33
2014														248,142				243,985				238,044				83
2015																		320,040				295,642				(7,388		)
2016																						302,400				117,889
Total																						$	1,628,631			$	113,548
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007		$	22,087			$	20,590			$	18,614			$	22,218			$	22,217			$	22,190
2008		83,683				85,389				83,733				89,957				89,721				89,888
2009		86,679				85,925				85,924				79,398				79,623				81,189
2010		112,897				109,545				107,609				126,149				126,290				126,948
2011		127,537				138,327				135,838				142,448				144,336				144,079
2012						109,192				113,440				154,319				153,353				154,172
2013										149,742				152,738				162,911				165,426
2014														132,257				237,098				237,759
2015																		169,328				302,496
2016																						118,214
Total																						1,442,361
Total net reserves																						$	186,270

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

  

Diversified Reinsurance U.S. Casualty		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	570,859			$	563,762			$	552,718			$	546,160			$	552,342			$	556,561			$	7,626
2008		179,242				159,414				156,195				154,279				155,642				155,965				17,410
2009		173,642				166,358				160,008				160,081				158,660				160,410				13,970
2010		268,694				264,235				310,713				341,940				335,352				340,544				15,528
2011		228,557				244,735				219,923				234,220				237,767				241,352				15,052
2012		—				317,594				278,763				300,639				303,581				312,918				18,811
2013		—				—				342,371				247,636				312,932				332,589				34,198
2014		—				—				—				391,428				344,113				376,104				66,706
2015		—				—				—				—				299,392				309,786				86,124
2016		—				—				—				—				—				287,421				116,062
Total																						$	3,073,650			$	391,487
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	349,690			$	394,639			$	432,821			$	452,716			$	470,930			$	476,064
2008		83,356				96,594				105,477				111,013				117,842				127,580
2009		45,258				57,920				63,600				68,522				76,127				79,513
2010		183,421				226,245				266,471				291,738				312,932				323,856
2011		65,448				133,485				154,476				180,590				194,943				206,402
2012		—				102,856				173,690				201,190				221,013				243,436
2013		—				—				119,188				192,697				233,927				271,516
2014		—				—				—				122,479				225,996				266,904
2015		—				—				—				—				119,688				187,319
2016		—				—				—				—				—				115,778
Total																						2,298,368
Total net reserves																						$	775,282

 

 

 

 

 

 

Diversified Reinsurance U.S. Property		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—			$	—
2008		16,051				16,011				15,934				15,984				15,922				15,932				100
2009		109,495				109,404				108,496				109,224				109,810				109,351				619
2010		123,023				124,746				120,779				120,551				120,804				121,263				(322		)
2011		153,480				159,379				160,585				162,038				160,959				160,987				1,245
2012		—				147,967				164,514				162,140				162,647				161,975				2,378
2013		—				—				109,575				119,369				116,228				116,373				4,898
2014		—				—				—				124,094				142,233				143,556				9,853
2015		—				—				—				—				116,700				120,470				17,068
2016		—				—				—				—				—				101,435				51,508
Total																						$	1,051,342			$	87,347
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—
2008		14,380				15,055				15,440				15,564				15,627				15,741
2009		90,484				100,943				104,179				106,464				107,609				107,933
2010		84,632				104,160				112,795				116,522				118,208				120,685
2011		67,359				116,449				142,121				153,427				156,122				158,332
2012		—				69,963				114,966				141,693				149,682				155,803
2013		—				—				40,627				77,931				101,973				107,174
2014		—				—				—				48,006				96,525				122,844
2015		—				—				—				—				34,839				79,455
2016		—				—				—				—				—				27,596
Total																						895,563
Total net reserves																						$	155,779

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

Diversified Reinsurance Accident & Health		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—			$	—
2008		11,153				11,147				11,133				11,111				11,106				11,106				—
2009		80,424				79,810				79,604				79,601				79,666				79,657				18
2010		43,582				43,271				43,048				43,281				43,366				43,366				2
2011		31,461				32,302				32,003				31,994				31,999				31,999				40
2012		—				29,270				31,725				31,860				31,816				31,815				(6		)
2013		—				—				24,995				26,171				23,751				23,558				16
2014		—				—				—				27,851				28,839				25,750				523
2015		—				—				—				—				39,768				42,209				10,940
2016		—				—				—				—				—				53,164				38,450
Total																						$	342,624			$	49,983
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—
2008		11,145				11,142				11,128				11,106				11,106				11,106
2009		79,918				79,776				79,634				79,432				79,654				79,640
2010		33,498				42,809				42,995				43,095				43,365				43,365
2011		8,924				24,105				31,837				31,915				31,990				31,959
2012		—				7,407				23,362				31,733				31,824				31,821
2013		—				—				6,246				17,710				23,125				23,542
2014		—				—				—				8,001				16,909				25,009
2015		—				—				—				—				8,170				29,251
2016		—				—				—				—				—				12,974
Total																						288,667
Total net reserves																						$	53,957

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

Diversified Reinsurance International Insurance Services		Incurred losses and LAE, net of reinsurance																								At December 31, 2016
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016				Total IBNR
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—			$	—
2008		—				—				—				—				—				—				—
2009		—				—				—				—				—				—				—
2010		74,049				73,662				73,514				73,825				72,029				73,621				(2,683		)
2011		48,766				47,470				47,536				48,042				48,100				47,832				(291		)
2012		—				49,719				45,757				46,169				46,507				47,017				(353		)
2013		—				—				45,319				51,487				52,377				52,615				(490		)
2014		—				—				—				38,584				48,361				48,888				2,067
2015		—				—				—				—				37,607				40,637				(1,154		)
2016		—				—				—				—				—				33,788				9,749
Total																						$	344,398			$	6,845
		Cumulative paid losses and LAE, net of reinsurance
For the Year Ended December 31,		2011				2012				2013				2014				2015				2016
Accident Year:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
2007 and prior		$	—			$	—			$	—			$	—			$	—			$	—
2008		—				—				—				—				—				—
2009		—				—				—				—				—				—
2010		30,401				39,490				44,030				46,383				47,945				49,463
2011		26,096				49,185				50,938				52,513				53,049				53,386
2012		—				21,120				38,704				42,153				43,568				44,340
2013		—				—				21,398				40,973				44,485				46,536
2014		—				—				—				19,271				37,797				42,201
2015		—				—				—				—				18,002				35,569
2016		—				—				—				—				—				17,051
Total																						288,546
Total net reserves																						$	55,852

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars) 

 

The following table represents a reconciliation of the net incurred and paid claims development tables to the reserve for loss and LAE in the Consolidated Balance Sheet:

 

		As at December 31, 2016
		Total Net Reserves				Reinsurance Recoverables on unpaid claims				Total Gross Reserves
Diversified Reinsurance
U.S. Casualty		$	775,282			$	36,817			$	812,099
U.S. Property		155,779				14,467				170,246
Accident & Health		53,957				—				53,957
International Insurance Services		55,852				3,015				58,867
Other Diversified(1)		8,766				—				8,766
Diversified Reinsurance - Segment		1,049,636				54,299				1,103,935
AmTrust Reinsurance
Master Quota Share Workers Compensation		976,708				—				976,708
Master Quota Share General Liability		187,781				—				187,781
Master Quota Share Commercial Auto Liability		177,496				—				177,496
Hospital Liability		196,540				—				196,540
Other (Including Retrocessional Programs)		186,270				32,933				219,203
AmTrust Reinsurance - Segment		1,724,795				32,933				1,757,728
Other		22,129				12,704				34,833
Total claims reserves		$	2,796,560			$	99,936			$	2,896,496

 

 

 

MAIDEN HOLDINGS, LTD.

PRO-FORMA FOR INFORMATIONAL PURPOSES ONLY

(In thousands of U.S. dollars)

 

 

 

Claims Duration Disclosure

 

		Average annual payout of incurred claims by age, net of reinsurance
		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6
Diversified Reinsurance
U.S. Casualty		34.7	%	22.6	%	6.6	%	6.1	%	0.1	%	4.6	%
U.S. Property		35.8	%	33.3	%	17.3	%	6.6	%	3.1	%	1.6	%
Accident & Health		24.8	%	48.1	%	26.4	%	0.6	%	—	%	—	%
International Insurance Services		45.4	%	29.5	%	6.3	%	3.2	%	0.9	%	(1.9	)%
Other(1)		17.1	%	8.3	%	25.7	%	25.0	%	15.9	%	3.0	%
Diversified Reinsurance - Segment		35.9	%	30.9	%	9.7	%	5.6	%	2.5	%	2.8	%
AmTrust Reinsurance
Master Quota Share Workers Compensation		18.4	%	31.3	%	19.9	%	11.2	%	6.3	%	0.9	%
Master Quota Share General Liability		7.6	%	12.6	%	14.5	%	20.5	%	16.3	%	9.3	%
Master Quota Share Commercial Auto Liability		14.8	%	21.8	%	20.2	%	18.6	%	12.1	%	4.7	%
Hospital Liability		1.1	%	16.3	%	26.4	%	25.4	%	14.2	%	1.7	%
Other (Including Retrocessional Programs)		62.0	%	31.9	%	2.9	%	(1.0	)%	2.7	%	(2.4	)%
AmTrust Reinsurance - Segment		28.4	%	28.0	%	14.7	%	10.3	%	7.7	%	1.4	%

 

(1)

Diversified Reinsurance Other line of business refers to Bermuda runoff treaty and the European treaty division which first starting writing business in the first quarter of 2016.