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.


For the Six Months Ended June 30,	2026		2025
Premiums written
Direct	$	1,287	$	1,379
Assumed	2,804		(283)
Ceded	(1)		(1)
Net	$	4,090	$	1,095
Premiums earned
Direct	$	1,466	$	1,384
Assumed	5,195		1,039
Ceded	(30)		(1)
Net	$	6,631	$	2,422
Loss and LAE
Gross loss and LAE	$	3,811	$	(6,171)
Loss and LAE ceded	(41)		210
Net	$	3,770	$	(5,961)

The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2026 was $412,121 (December 31, 2025: $461,197) presented in the Condensed Consolidated Balance Sheets. As of June 30, 2026, the Company's total allowance for expected credit losses on its reinsurance recoverable balance was $1,613 (December 31, 2025: $1,740).

The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three and six months ended June 30, 2026 and 2025, respectively:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Allowance for expected credit losses on reinsurance recoverable, beginning of period	$	1,930	$	—	$	1,740	$	—
Expected credit losses on acquired recoverables under the Combination	—		1,655		—		1,655
Decrease in allowance for expected credit losses on reinsurance recoverable where credit losses were previously recognized	(317)		—		(127)		—

Allowance for expected credit losses on reinsurance recoverable, end of period	$	1,613	$	1,655	$	1,613	$	1,655

On December 27, 2018, Cavello Bay Reinsurance Limited ("Cavello") and Maiden Reinsurance entered into a retrocession agreement pursuant to which certain assets and liabilities associated with the U.S. treaty reinsurance business held by Maiden Reinsurance were 100.0% retroceded to Cavello in exchange for a ceding commission. The reinsurance recoverable on unpaid losses due from Cavello under this retrocession agreement was $31,521 at June 30, 2026 (December 31, 2025: $32,791). The recoverable due from Cavello is net of an allowance for expected credit losses of $710 as at June 30, 2026 (December 31, 2025: $689).

On July 31, 2019, Maiden Reinsurance and Cavello entered into a Loss Portfolio Transfer and Adverse Development Cover Agreement ("LPT/ADC Agreement") pursuant to which Cavello assumed the loss reserves as of December 31, 2018 associated with the AmTrust Quota Share in excess of a $2,178,535 retention up to $600,000, in exchange for a retrocession premium of $445,000. The $2,178,535 retention is subject to adjustment for paid losses subsequent to December 31, 2018.

The LPT/ADC Agreement provides Maiden Reinsurance with $155,000 in adverse development cover over its carried AmTrust Quota Share loss reserves at December 31, 2018. The LPT/ADC Agreement meets the criteria for risk transfer and is thus accounted for as retroactive reinsurance. As of June 30, 2026, the reinsurance recoverable on unpaid losses under the LPT/ADC Agreement was $379,391 (December 31, 2025: $427,013) which was net of an allowance for expected credit losses of $901 as at June 30, 2026 (December 31, 2025: $1,048).

Cavello provided collateral in the form of a letter of credit in the amount of $445,000 to AmTrust under the LPT/ADC Agreement. Cavello is subject to additional collateral funding requirements as explained in Note 10. Related Party Transactions. As of June 30, 2026, the amount of collateral required was $351,466 (December 31, 2025: $362,501). Under the terms of the LPT/ADC Agreement, 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 Group Limited, has credit ratings of BBB+ from both Standard & Poor's and Fitch Ratings at June 30, 2026. On February 13, 2026, S&P Global Ratings affirmed the BBB+ issuer credit rating on Enstar, and affirmed the A issuer credit and financial strength ratings on its operating subsidiary, Cavello.

On July 18, 2025, the Company received correspondence from Cavello disputing the dates of loss assigned by Maiden Reinsurance’s cedant in the underlying reinsurance contract to a significant number of claims regarding certain coverage. In that correspondence, Cavello asserts that $46,700 in identified claims and approximately $25,000 in potential additional claims would fall outside the applicable coverage and reserves all of its rights under the applicable agreements if these matters are not resolved. This correspondence and the asserted amounts resulted from an audit requested by Cavello in December 2024 pursuant to its rights under the LPT/ADC Agreement. The Company is continuing to discuss and exchange information with Cavello on these matters and believes the terms of the LPT/ADC Agreement support both the Company’s position on the dates of loss and the current reinsurance recoverable Maiden Reinsurance has recognized for these claims. At this time, the Company cannot predict the outcome of these issues.