Executive Summary

Q3 2024 deteriorated materially: total revenues fell to $14.5M and diluted EPS was $(0.35), driven by higher underwriting losses (adverse prior-period development, AmTrust premium deficiency), lower investment income, realized losses tied to alternative asset sales, and FX losses .
Management executed a balance sheet repositioning, reducing alternative investments by 24.8% in Q3 (incurring ~$6.6M in losses and ~$1.6M in related expenses) to strengthen liquidity and pivot to fee-based insurance opportunities .
LPT/ADC recoveries with Enstar are expected to begin in Q4 2024; $11.8M (101%) of Q3 adverse development is covered and will amortize into future GAAP income over time, reinforcing the relevance of adjusted book value ($2.98 vs. GAAP $2.09 at 9/30) .
Strategy update: actively pursuing finality solutions for AmTrust liabilities (potential significant execution costs), continuing IIS divestiture efforts (targeting 15–20% OpEx reduction), and disciplined buybacks (388,728 shares in Q3 at $1.65) .

What Went Well and What Went Wrong

What Went Well
- Adjusted book value per share remained a key focus ($2.98 at 9/30/24) supported by a larger unamortized LPT/ADC deferred gain ($88.0M), with recoveries slated to start in Q4 2024 .
- Diversified Reinsurance premiums grew YoY (NPE $9.6M vs. $7.2M), reflecting continued growth in credit life programs at Swedish subsidiaries .
- Management advanced strategic repositioning: reduced alternative assets by 24.8% to bolster liquidity and pivot to fee-based revenue; reiterated no new alternative commitments .
What Went Wrong
- Underwriting: Q3 underwriting loss widened to $(18.8)M (vs. $(10.9)M LY) on higher adverse development and a $3.7M AmTrust premium deficiency accelerating DAC amortization .
- Investments/FX: total investment income fell to $1.8M (from $11.5M LY) amid alternative-asset sale losses and lower funds-withheld income; FX swung to a $(5.9)M loss (vs. +$4.6M) .
- Expenses: corporate G&A rose to $6.8M (from $3.9M LY) on $2.6M higher legal/actuarial fees tied to strategic initiatives; management also warns finality solutions for AmTrust may require significant charges .

Financial Results

Revenue, EPS, profitability vs prior periods and estimates

Metric	Q3 2023	Q2 2024	Q3 2024
Total Revenues ($M)	$21.755	$20.487	$14.477
Diluted EPS ($)	$(0.03)	$(0.10)	$(0.35)
Net Loss ($M)	$(3.527)	$(9.971)	$(34.468)
Underwriting Loss ($M)	$(10.910)	$(9.765)	$(18.751)
Net Investment Income ($M)	$9.048	$6.953	$4.878
Net Realized & Unrealized Gains/Losses ($M)	$0.244	$1.457	$(3.804)
Annualized ROAE (%)	(5.3)%	(16.5)%	(61.5)%
Non-GAAP Operating Loss/Share ($)	$(0.12)	$(0.11)	$(0.16)
vs. S&P Global consensus	N/A (not available)	N/A (not available)	N/A (not available)

Notes: No formal Street consensus available from S&P Global for MHLD; treat estimate comparisons as unavailable.

Quarterly trend (2024 only)

Metric	Q1 2024	Q2 2024	Q3 2024
Total Revenues ($M)	$28.904	$20.487	$14.477
Diluted EPS ($)	$0.01	$(0.10)	$(0.35)
Net Investment Income ($M)	$7.700	$6.953	$4.878
Net Realized & Unrealized Gains/Losses ($M)	$8.750	$1.457	$(3.804)
Underwriting Loss ($M)	$(7.524)	$(9.765)	$(18.751)

Segment breakdown (Underwriting)

Segment	Q3 2023	Q3 2024
Net Premiums Earned ($M) – Diversified	$7.207	$9.576
Net Premiums Earned ($M) – AmTrust	$5.272	$3.827
Net Loss & LAE ($M) – Diversified	$4.142	$4.036
Net Loss & LAE ($M) – AmTrust	$11.014	$15.821
Underwriting Loss ($M) – Diversified	$(2.541)	$(0.947)
Underwriting Loss ($M) – AmTrust	$(8.369)	$(17.804)

KPIs and balance sheet

KPI	Q2 2024	Q3 2024
Book Value/Share ($)	$2.38	$2.09
Adjusted Book Value/Share ($)	$3.17	$2.98
Unamortized Deferred Gain (LPT/ADC, $M)	$78.203	$88.021
Total Investable Assets ($M)	$794.207	$789.704
NOL Carryforwards ($M)	$338.2	$345.6
Common Shares Repurchased (QTD)	747,561 (avg $2.13)	388,728 (avg $1.65)

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Update	Change
LPT/ADC recoveries commencement	Q4 2024	Expected to commence in Q4 2024 (Q2 update)	Recoveries to begin in Q4 2024; deferred gain amortization to start	Maintained
Alternative investments commitments	Ongoing	No new commitments (Q2)	No new commitments; portfolio reduced 24.8% in Q3	Maintained/expanded
AmTrust liabilities finality solutions	Ongoing	Evaluating pathways (implied)	Actively pursuing; may require significant execution charges; not assured	New caution detail
IIS (International Insurance Services) disposition	12–24 months	Renewal rights with AmTrust; up to $6M OpEx reduction (Q1–Q2)	Actively pursuing disposition; expect 15–20% OpEx reduction	Clarified magnitude
Dividends	Q3 2024	None	None authorized	Maintained
Formal revenue/EPS guidance	2024	None	None provided	Unchanged

Earnings Call Themes & Trends

Note: No public earnings call transcript was found; themes reflect management press releases and investor presentations.

Topic	Q-2 (Q1’24)	Q-1 (Q2’24)	Current (Q3’24)	Trend
LPT/ADC recoveries	Expect start late 2024; $75.9M deferred gain	Expect start Q4 2024; $78.2M deferred gain	Recoveries to begin Q4 2024; $88.0M deferred gain	Execution approaching
Alternative investments	Strong PE gains; no new commitments	Lower income; TTM alt returns 9.4%	Portfolio cut 24.8%; incurred ~$6.6M losses; liquidity up; no new commitments	De-risking/liquidity pivot
AmTrust liabilities (finality)	—	—	Actively pursuing third-party finality; significant charges possible; no assurance	Elevated uncertainty
IIS divestiture	Renewal rights with AmTrust; up to $6M OpEx cut	Divestiture path reiterated	Disposition targeted; 15–20% OpEx reduction expectation	More definitive
Capital management	Buybacks continue	$69.4M buyback auth; ongoing	388.7k shares bought in Q3; $68.5M remaining auth	Ongoing
Tax assets/NOLs	$117.3M DTA ($1.17/sh) not recognized	$119.2M DTA ($1.19/sh) not recognized	$126.0M DTA ($1.27/sh) not recognized	Growing potential value

Management Commentary

“We began to reposition our balance sheet, reducing our alternative investment portfolio by 24.8%... These sales... strengthened our liquidity position, [but] temporarily reduced the gains on that portfolio during the third quarter.”
“We are pursuing finality solutions to resolve the AmTrust liabilities not covered by the Enstar LPT/ADC... These solutions could involve significant charges to execute... there can be no assurance that we will identify and execute acceptable finality solutions.”
“Approximately $11.8 million... of the total reported adverse PPD for the three months ended September 30, 2024, is expected to be covered by the LPT/ADC Agreement and ultimately return over time to Maiden as future GAAP income... We expect to begin recoveries... in the fourth quarter of 2024.”
“We continued our long-term capital management strategy and repurchased 388,728 common shares at an average price per share of $1.65.”

Q&A Highlights

No public earnings call transcript was available; the company released results and an investor presentation via the IR website, and did not furnish a transcript in SEC filings searched for Q3 2024 .

Estimates Context

S&P Global consensus: Not available for MHLD this quarter (missing mapping; could not retrieve). As such, we cannot benchmark EPS or revenue versus Street estimates. We did not find a credible consolidated sell-side consensus in public sources; treat MHLD as not broadly covered by major estimate services this quarter.

Key Takeaways for Investors

Loss-heavy quarter with clear drivers: higher AmTrust adverse development, a premium deficiency ($3.7M) accelerating DAC amortization, reduced investment income from shrinking funds-withheld, realized losses from alternative asset sales, and FX headwinds .
LPT/ADC should begin offsetting PPD volatility from Q4 2024 onward; $88.0M deferred gain and $67.0M remaining limit provide an economic buffer that will amortize into income over time (supports adjusted book value focus) .
Strategic pivot underway (fee-based/distribution businesses); reduced alt investments enhanced liquidity and risk profile but pressured near-term earnings—watch for execution on finality solutions and IIS divestiture to reduce OpEx by 15–20% longer term .
Capital management remains active with significant remaining repurchase authorizations; Q3 buybacks at ~$1.65 average provide downside support in periods of weakness versus book value .
Book value pressure in GAAP terms (to $2.09) likely persists until LPT/ADC recoveries start to flow; adjusted book value ($2.98) may be a better proxy for intrinsic value if recoveries progress as expected .
Key watch items for Q4/Q1: timing and magnitude of LPT/ADC recoveries, any updates on AmTrust finality (including potential charges), progress on IIS exits, trend in adverse development (AmTrust lines: commercial auto, GL, SRW) .

Supporting details and disclosures:

Consolidated statements and segment details are from the company’s Q3 2024 8‑K with exhibits, including the investor update presentation (Nov 12, 2024) .
Prior-quarter comparatives are from Q2 2024 and Q1 2024 8‑Ks and presentations .
No earnings call transcript was found in SEC or document listings for Q3 2024; results were posted to the IR website .

Maiden Holdings, Ltd. (MHLD)·Q3 2024 Earnings Summary