Maiden Holdings Ltd has reported a third quarter net loss of $34.5 million, which compares with a net loss of $3.5 million for the prior year quarter.

The Bermudian-based company said it recorded a higher underwriting loss of $18.8 million in the quarter compared with an underwriting loss of $10.9 million during the same period in 2023.

Maiden reported lower total income from investment activities of $1.8 million for the quarter, compared with $11.5 million during the prior year quarter.

Book value per common share decreased 15.7 per cent to $2.09 and adjusted book value per common share decreased 6.6 per cent to $2.98 per common share at September 30, compared with book values recorded at December 31, 2023.

Deferred gain on the company’s loss portfolio transfer and adverse development cover agreement with Bermudian-based Cavello Bay Reinsurance Ltd increased by $9.8 million to $88 million at September 30 due to adverse prior year loss development, which is expected to be recoverable over time as future GAAP income with $67 million remaining in additional limit.

The company said recoveries under the LPT/ADC agreement, and associated GAAP income recognition of deferred gain, are to begin in the fourth quarter.

Patrick J. Haveron, Maiden’s chief executive, said: “During the third quarter, as we continue to pursue strategic paths to build fee-based businesses, we began to reposition our balance sheet, reducing our alternative investment portfolio by 24.8 per cent.

“These sales, which also strengthened our liquidity position, temporarily reduced the gains on that portfolio during the third quarter, although we remain confident this portfolio will continue to deliver the returns we set out to achieve.

“We have also not made any new commitments to alternative investment opportunities and continue to evaluate additional paths to further reducing this portfolio as we advance our strategic plans.

“These asset sales, along with certain expenses incurred in the third quarter related to our strategic initiatives, contributed a significant amount of non-recurring impacts to our results.”