Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2018

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

For the transition period from _________ to _________

Commission File No. 001-34042

MAIDEN HOLDINGS, LTD.
(Exact name of registrant as specified in its charter)

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

(441) 298-4900
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
 
Accelerated filer o
Non-accelerated filer o
 
(Do not check if a smaller reporting company)
 
 
Smaller reporting company o
 
 
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act).
Yes o No x

As of August 3, 2018, the number of the Registrant's Common Stock ($.01 par value) outstanding was 83,143,237.





INDEX
 
 
Page
PART I - Financial Information
 
 
 

 
 
Condensed Consolidated Balance Sheets as of June 30, 2018 (unaudited) and December 31, 2017 (audited)
 
 
 
 
Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2018 and 2017 (unaudited)
 
 
 
 
Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2018 and 2017 (unaudited)
 
 
 
 
Condensed Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2018 and 2017 (unaudited)
 
 
 
 
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017 (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II - Other Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MAIDEN HOLDINGS, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars, except share and per share data)
 
 
June 30,
2018
 
December 31,
2017
 
 
(Unaudited)
 
(Audited)
ASSETS
 
 
 
 
Investments:
 
 
 
 
Fixed maturities, available-for-sale, at fair value (amortized cost 2018: $4,064,595; 2017: $4,027,993)
 
$
3,966,910

 
$
4,044,370

Fixed maturities, held-to-maturity, at amortized cost (fair value 2018: $1,026,672; 2017: $1,125,626)
 
1,039,144

 
1,097,801

Other investments, at fair value
 
5,898

 
6,600

Total investments
 
5,011,952

 
5,148,771

Cash and cash equivalents
 
72,102

 
67,919

Restricted cash and cash equivalents
 
154,677

 
123,584

Accrued investment income
 
34,228

 
34,993

Reinsurance balances receivable, net (includes $129,584 and $50,415 from related parties in 2018 and 2017, respectively)
 
467,646

 
345,043

Reinsurance recoverable on unpaid losses (includes $2,006 and $2,204 from related parties in 2018 and 2017, respectively)
 
109,805

 
117,611

Loan to related party
 
167,975

 
167,975

Deferred commission and other acquisition expenses (includes $408,013 and $359,964 from related parties in 2018 and 2017, respectively)
 
472,202

 
439,597

Goodwill and intangible assets, net
 
74,659

 
75,583

Other assets
 
152,942

 
123,113

Total assets
 
$
6,718,188

 
$
6,644,189

LIABILITIES
 
 
 
 
Reserve for loss and loss adjustment expenses (includes $2,450,846 and $2,298,822 from related parties in 2018 and 2017, respectively)
 
$
3,653,303

 
$
3,547,248

Unearned premiums (includes $1,262,735 and $1,179,285 from related parties in 2018 and 2017, respectively)
 
1,603,883

 
1,477,038

Accrued expenses and other liabilities
 
100,121

 
132,795

Senior notes - principal amount
 
262,500

 
262,500

Less: unamortized debt issuance costs
 
7,913

 
8,018

Senior notes, net
 
254,587

 
254,482

Total liabilities
 
5,611,894

 
5,411,563

Commitments and Contingencies
 


 


EQUITY
 
 
 
 
Preference shares
 
465,000

 
465,000

Common shares ($0.01 par value; 87,927,787 and 87,730,054 shares issued in 2018 and 2017, respectively; 83,143,237 and 82,974,895 shares outstanding in 2018 and 2017, respectively)
 
879

 
877

Additional paid-in capital
 
749,319

 
748,113

Accumulated other comprehensive (loss) income
 
(96,959
)
 
13,354

Retained earnings
 
18,338

 
35,472

Treasury shares, at cost (4,784,550 and 4,755,159 shares in 2018 and 2017, respectively)
 
(30,835
)
 
(30,642
)
Total Maiden shareholders’ equity
 
1,105,742

 
1,232,174

Noncontrolling interests in subsidiaries
 
552

 
452

Total equity
 
1,106,294

 
1,232,626

Total liabilities and equity
 
$
6,718,188

 
$
6,644,189

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

3


MAIDEN HOLDINGS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands of U.S. dollars, except per share data)
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
 
Gross premiums written
 
$
654,236

 
$
705,198

 
$
1,506,876

 
$
1,628,625

Net premiums written
 
$
645,589

 
$
684,072

 
$
1,494,922

 
$
1,584,620

Change in unearned premiums
 
21,757

 
27,053

 
(142,144
)
 
(164,011
)
Net premiums earned
 
667,346

 
711,125

 
1,352,778

 
1,420,609

Other insurance revenue
 
2,033

 
1,547

 
5,759

 
5,328

Net investment income
 
44,313

 
40,512

 
87,183

 
82,669

Net realized (losses) gains on investment
 
(414
)
 
1,572

 
(57
)
 
2,457

Total revenues
 
713,278

 
754,756

 
1,445,663

 
1,511,063

Expenses
 
 
 
 
 
 
 
 
Net loss and loss adjustment expenses
 
491,554

 
528,620

 
964,878

 
1,009,189

Commission and other acquisition expenses
 
198,745

 
210,039

 
407,359

 
432,068

General and administrative expenses
 
19,574

 
15,346

 
39,524

 
32,760

Interest and amortization expenses
 
4,829

 
6,745

 
9,658

 
13,601

Accelerated amortization of senior note issuance cost
 

 
2,809

 

 
2,809

Amortization of intangible assets
 
462

 
533

 
924

 
1,066

Foreign exchange (gains) losses
 
(4,821
)
 
6,722

 
(2,414
)
 
8,643

Total expenses
 
710,343

 
770,814

 
1,419,929

 
1,500,136

Income (loss) before income taxes
 
2,935

 
(16,058
)
 
25,734

 
10,927

Less: income tax expense
 
255

 
277

 
711

 
761

Net income (loss)
 
2,680

 
(16,335
)
 
25,023

 
10,166

Add: net (income) loss attributable to noncontrolling interests
 
(47
)
 
9

 
(118
)
 
31

Net income (loss) attributable to Maiden
 
2,633

 
(16,326
)
 
24,905

 
10,197

Dividends on preference shares
 
(8,546
)
 
(6,033
)
 
(17,091
)
 
(12,066
)
Net (loss) income attributable to Maiden common shareholders
 
$
(5,913
)
 
$
(22,359
)
 
$
7,814

 
$
(1,869
)
Basic (loss) earnings per share attributable to Maiden common shareholders
 
$
(0.07
)
 
$
(0.26
)
 
$
0.09

 
$
(0.02
)
Diluted (loss) earnings per share attributable to Maiden common shareholders
 
$
(0.07
)
 
$
(0.26
)
 
$
0.09

 
$
(0.02
)
Dividends declared per common share
 
$
0.15

 
$
0.15

 
$
0.30

 
$
0.30

Weighted average number of common shares - basic
 
83,126,204

 
86,564,794

 
83,083,545

 
86,458,413

Adjusted weighted average number of common shares and assumed conversions - diluted
 
83,126,204

 
86,564,794

 
83,373,285

 
86,458,413


See accompanying notes to the unaudited Condensed Consolidated Financial Statements.


4


MAIDEN HOLDINGS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(in thousands of U.S. dollars)
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Net income (loss)
 
$
2,680

 
$
(16,335
)
 
$
25,023

 
$
10,166

Other comprehensive (loss) income
 
 
 
 
 
 
 
 
Net unrealized holdings (losses) gains on available-for-sale fixed maturities arising during the period
 
(50,425
)
 
41,995

 
(117,268
)
 
47,656

Adjustment for reclassification of net realized losses (gains) recognized in net income
 
745

 
(199
)
 
(745
)
 
896

Foreign currency translation adjustment
 
15,605

 
(21,777
)
 
7,665

 
(27,975
)
Other comprehensive (loss) income, before tax
 
(34,075
)
 
20,019

 
(110,348
)
 
20,577

Income tax benefit (expense) related to components of other comprehensive income
 
2

 
(11
)
 
17

 
30

Other comprehensive (loss) income, after tax
 
(34,073
)
 
20,008

 
(110,331
)
 
20,607

Comprehensive (loss) income
 
(31,393
)
 
3,673

 
(85,308
)
 
30,773

Net (income) loss attributable to noncontrolling interests
 
(47
)
 
9

 
(118
)
 
31

Other comprehensive loss (income) attributable to noncontrolling interests
 
29

 
(24
)
 
18

 
(29
)
Comprehensive (income) loss attributable to noncontrolling interests
 
(18
)
 
(15
)
 
(100
)
 
2

Comprehensive (loss) income attributable to Maiden
 
$
(31,411
)
 
$
3,658

 
$
(85,408
)
 
$
30,775


See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

5


MAIDEN HOLDINGS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
(in thousands of U.S. dollars)
For the Six Months Ended June 30,

2018

2017
Preference shares - Series A, C and D
 
 
 
 
Beginning balance
 
$
465,000

 
$
315,000

Issuance of Preference Shares – Series D
 

 
150,000

Ending balance
 
465,000

 
465,000

Common shares
 
 
 
 
Beginning balance
 
877

 
873

Exercise of options and issuance of shares
 
2

 
4

Ending balance
 
879

 
877

Additional paid-in capital
 
 
 
 
Beginning balance
 
748,113

 
749,256

Exercise of options and issuance of common shares
 
(2
)
 
1,006

Share-based compensation expense
 
1,208

 
1,470

Issuance costs of Preference Shares - Series D
 

 
(5,025
)
Ending balance
 
749,319

 
746,707

Accumulated other comprehensive (loss) income
 
 
 
 
Beginning balance
 
13,354

 
14,997

Change in net unrealized (losses) gains on investment
 
(117,996
)
 
48,582

Foreign currency translation adjustment
 
7,683

 
(28,004
)
Ending balance
 
(96,959
)
 
35,575

Retained earnings
 
 
 
 
Beginning balance
 
35,472

 
285,662

Net income attributable to Maiden
 
24,905

 
10,197

Dividends on preference shares
 
(17,091
)
 
(12,066
)
Dividends on common shares
 
(24,948
)
 
(25,987
)
Ending balance
 
18,338

 
257,806

Treasury shares
 
 
 
 
Beginning balance
 
(30,642
)
 
(4,991
)
Shares repurchased
 
(193
)
 
(575
)
Ending balance
 
(30,835
)
 
(5,566
)
Noncontrolling interests in subsidiaries
 
 
 
 
Beginning balance
 
452

 
355

Net income (loss) attributable to noncontrolling interests
 
118

 
(31
)
Foreign currency translation adjustment
 
(18
)
 
29

Ending balance
 
552

 
353

Total equity
 
$
1,106,294

 
$
1,500,752

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

6


MAIDEN HOLDINGS, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands of U.S. dollars)
For the Six Months Ended June 30,
 
2018
 
2017
Cash flows from operating activities
 
 
 
 
Net income
 
$
25,023

 
$
10,166

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation, amortization and share-based compensation
 
5,611

 
7,480

Net realized losses (gains) on investment
 
57

 
(2,457
)
Foreign exchange (gains) losses
 
(2,414
)
 
8,643

Changes in assets  (increase) decrease:
 
 
 
 
Reinsurance balances receivable, net
 
(126,242
)
 
(84,743
)
Reinsurance recoverable on unpaid losses
 
7,765

 
12,441

Accrued investment income
 
653

 
1,132

Deferred commission and other acquisition expenses
 
(33,340
)
 
(49,773
)
Other assets
 
(38,507
)
 
(14,669
)
Changes in liabilities  increase (decrease):
 
 
 
 
Reserve for loss and loss adjustment expenses
 
118,404

 
180,462

Unearned premiums
 
129,892

 
163,689

Accrued expenses and other liabilities
 
(30,798
)
 
(8,824
)
Net cash provided by operating activities
 
56,104

 
223,547

Cash flows from investing activities:
 
 
 
 
Purchases of fixed-maturities – available-for-sale
 
(529,247
)
 
(260,963
)
Purchases of other investments
 

 
(147
)
Proceeds from sales of fixed-maturities – available-for-sale
 
301,690

 
102,394

Proceeds from maturities, paydowns and calls of fixed maturities – available-for-sale
 
194,045

 
205,606

Proceeds from maturities and calls of fixed maturities – held to maturity
 
56,788

 
7,856

Proceeds from sale and redemption of other investments
 
1,022

 
388

Other, net
 
(2,098
)
 
(864
)
Net cash provided by investing activities
 
22,200

 
54,270

Cash flows from financing activities:
 
 
 
 
Repurchase of common shares
 
(193
)
 
(575
)
Dividends paid – Maiden common shareholders
 
(24,924
)
 
(25,936
)
Dividends paid – preference shares
 
(17,091
)
 
(12,066
)
Preference shares, net of issuance costs
 

 
145,120

Redemption of 2012 senior notes
 

 
(100,000
)
Issuance of common shares
 

 
1,010

Net cash (used in) provided by financing activities
 
(42,208
)
 
7,553

Effect of exchange rate changes on foreign currency cash and cash equivalents and restricted cash and cash equivalents
 
(820
)
 
2,391

Net increase in cash and cash equivalents and restricted cash and cash equivalents
 
35,276

 
287,761

Cash and cash equivalents and restricted cash and cash equivalents, beginning of period
 
191,503

 
149,535

Cash and cash equivalents and restricted cash and cash equivalents, end of period
 
$
226,779

 
$
437,296

 
 
 
 
 
Reconciliation of cash and cash equivalents, and restricted cash and cash equivalents reported within Condensed Consolidated Balance Sheets that sum to the total shown above:
 
 
 
 
Cash and cash equivalents, end of period
 
$
72,102

 
$
246,826

Restricted cash and cash equivalents, end of period
 
154,677

 
190,470

Total cash and cash equivalents, and restricted cash and cash equivalents shown in the Condensed Consolidated Statements of Cash Flows, end of period
 
$
226,779

 
$
437,296

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

7

MAIDEN HOLDINGS, LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands of U.S. dollars, except share and per share data)


1. Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Maiden Holdings, Ltd. ("Maiden Holdings") and its subsidiaries (the "Company" or "Maiden"). They have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions and accounts have been eliminated.
These interim unaudited Condensed Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim period and all such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative, if annualized, of those to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
These unaudited Condensed Consolidated Financial Statements, including these notes, should be read in conjunction with the Company's audited Consolidated Financial Statements, and related notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Certain prior year comparatives have been reclassified for 2017 to conform to the 2018 presentation. The effect of these reclassifications had no impact on previously reported shareholders' equity or net income (loss).
2. Significant Accounting Policies
There have been no material changes to our significant accounting policies as described in our Annual Report on Form 10-K for the year ended December 31, 2017 except for the following:
Recently Adopted Accounting Standards Updates
Revenue Recognition
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09 guidance that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other insurance revenue activities. This guidance is effective for reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company has adopted the guidance in ASU 2014-09 on January 1, 2018. Our analysis of revenues for the three and six months ended June 30, 2018 indicates that substantially all of our revenues are from sources not within the scope of the standard. The Company generates an insignificant amount of fee income which is reported under other insurance revenue in the Consolidated Statements of Income and is within the scope of ASU 2014-09. The Company’s current accounting policy for this revenue is to recognize fee income as earned when the related services are performed which is consistent with the guidance in this ASU. Other insurance revenue is currently less than 1% of total revenues so the expanded disclosure requirements mandated by this ASU are not required or deemed relevant due to materiality. As substantially all of our revenue sources are not within the scope of the standard, the adoption of the standard did not have a material effect on our reported consolidated financial condition, results of operations or cash flows.
Scope of Modification Accounting
In May 2017, the FASB issued ASU 2017-09 to amend the guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company currently has a number of share based payment awards as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2017. The adoption of this guidance on January 1, 2018 did not have an impact on the Company's Condensed Consolidated Financial Statements as no modifications were made in any of its current share based payment awards.
Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB issued ASU 2016-01 that will change how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The new guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. It does not change the guidance for classifying and measuring investments in debt securities and loans. Under the new guidance, entities will have to measure many equity investments at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. This includes investments in partnerships, unincorporated joint ventures and limited liability companies that do not result in consolidation and are not accounted for under the equity method. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify today as available-for-sale ("AFS") in Accumulated Other Comprehensive Income ("AOCI"). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance on January 1, 2018 resulted in the recognition of $67 of net unrealized losses and $823 of net unrealized gains on our investments in limited partnerships within net income during the three and six months ended June 30, 2018, respectively. Our investments in limited partnerships do not have a readily determinable fair value and therefore, the new guidance was adopted prospectively. Please refer to "Note 4. Investments (d) - Realized Gains on Investment" for additional information.

8

MAIDEN HOLDINGS, LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands of U.S. dollars, except share and per share data)

2. Significant Accounting Policies (continued)
Classification of Certain Cash Receipts and Cash Payments
In August 2016, the FASB issued ASU 2016-15 guidance to clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows. The new guidance amends Accounting Standards Codification ("ASC") 230 Statement of Cash Flows, a principles based requiring judgment to determine the appropriate classification of cash flow as operating, investing or financing activities which created diversity in how certain cash receipts and cash payments were classified. The new guidance clarifies that if a receipt or payment has aspects of more than one class of cash flows and cannot be separated, the classification will depend on the predominant source or use. While the new guidance attempts to clarify how the predominance principle should be applied, judgment will still be required. The guidance is effective for public business entities for annual periods beginning after December 15, 2017 and interim periods therein. Entities will have to apply the guidance retrospectively, but if it is impracticable to do so for an issue, the amendments related to that issue would be applied prospectively. The adoption of this guidance did not have an impact on the Company's results of operations, financial position or liquidity.
Presentation of Restricted Cash in the Statement of Cash Flows
In November 2016, the FASB issued ASU 2016-18 guidance that require entities to show the changes in the total cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company adopted this guidance on January 1, 2018. The adoption of this guidance did not have a material effect on the Company's consolidated financial condition, results of operations and disclosures, other than the presentation of restricted cash and cash equivalents in the statement of cash flows. The financial impact in the consolidated statements of cash flows has eliminated the presentation of changes in restricted cash and cash equivalents from cash flows from investing activities. Therefore, changes that result from transfers between cash, cash equivalents, and restricted cash and cash equivalents are no longer presented as cash flow activities in the statement of cash flows. Additionally, a reconciliation between the statement of financial position and the statement of cash flows has been disclosed to show the movement in cash and cash equivalents and restricted cash and cash equivalents from the prior period.
Recently Adopted Accounting Standards Not Yet Adopted
Improvements to Non-employee Share-Based Payment Accounting
In June 2018, the FASB issued ASU 2018-07 guidance that simplifies the accounting for share-based payments granted to non-employees for goods and services. Under the guidance, most of the guidance on such payments to non-employees would be aligned with the requirements for share-based payments granted to employees as the board viewed the awards to both employees and non-employees to be economically similar and that two different accounting models are not justified. Under the new guidance, i) non-employee share-based payment awards should be measured at the grant date fair value rather than the fair value of the consideration received or the fair value of the equity instruments issued, whichever can be more reliably measured, ii) the measurement date for equity classified non-employee share-based payment awards is at the grant date and not the earlier of the date at which a commitment for performance by the counterparty is reached and the date at which the counterparty's performance is complete, and iii) entities should consider the probability of satisfying the performance conditions when awards contain such conditions. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but not earlier than an entity's adoption date of Topic 606. The Company is currently evaluating the impact of this guidance on the Company's results of operations and financial position; however, it is not expected to have a material impact on the Company’s Consolidated Financial Statements.
Codification Improvements
In July 2018, the FASB issued ASU 2018-09 which includes clarifications to existing codifications or corrections of unintended application of guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments in this update include items raised for board consideration through the codification's feedback system that met the scope of this project, making due process necessary. The amendments affect a wide variety of topics in the codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. None of the topics deemed applicable have a material impact in the Company's interim consolidated financial statements. However, the Company is currently evaluating the impact of applicable sections on its results of operations and financial position once those sections are adopted beginning after December 15, 2018.
Codification Improvements to Topic 842, Leases
In July 2018, the FASB issued ASU 2018-10 for improvements related to Update 2016-02 to increase stakeholders' awareness of the amendments and to expedite the improvements. The amendments in this Update affect narrow aspects of the guidance issued in the amendments in Update 2016-02. For entities that early adopted Topic 842, the amendments are effective upon issuance of this Update, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. The Company is currently evaluating the impact of this guidance on the Company's results of operations and financial position.

9

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
The Company currently has two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located, primarily, in the U.S. and Europe. Our AmTrust Reinsurance segment includes all business ceded to our wholly owned subsidiary, Maiden Reinsurance Ltd. ("Maiden Bermuda") from AmTrust Financial Services, Inc. ("AmTrust"), primarily the AmTrust Quota Share and the European Hospital Liability Quota Share. In addition to our reportable segments, the results of operations of the former National General Holdings Corporation Quota Share ("NGHC Quota Share") segment and the remnants of the U.S. excess and surplus ("E&S") business have been included in the "Other" category. Please refer to "Note 8. Related Party Transactions" for additional information.
The Company evaluates segment performance based on segment profit separately from the results of our investment portfolio. General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied. The Company does not allocate general corporate expenses to the segments. In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, deferred commission and other acquisition expenses, loans, goodwill and intangible assets, restricted cash and cash equivalents and investments and unearned reinsurance premiums ceded, funds withheld receivable and reinsurance recoverable on paid losses (presented as part of other assets in the Condensed Consolidated Balance Sheet). All remaining assets are allocated to Corporate.
The following tables summarize our reporting segment's underwriting results and the reconciliation of our reportable segments and Other category's underwriting results to our consolidated net income:
For the Three Months Ended June 30, 2018
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Other
 
Total
Gross premiums written
 
$
162,751

 
$
491,485

 
$

 
$
654,236

Net premiums written
 
$
154,278

 
$
491,311

 
$

 
$
645,589

Net premiums earned
 
$
191,497

 
$
475,849

 
$

 
$
667,346

Other insurance revenue
 
2,033

 

 

 
2,033

Net loss and loss adjustment expenses ("loss and LAE")
 
(138,561
)
 
(353,836
)
 
843

 
(491,554
)
Commission and other acquisition expenses
 
(46,112
)
 
(152,792
)
 
159

 
(198,745
)
General and administrative expenses
 
(10,907
)
 
(1,082
)
 

 
(11,989
)
Underwriting (loss) income
 
$
(2,050
)
 
$
(31,861
)
 
$
1,002

 
(32,909
)
Reconciliation to net income
 
 
 
 
 
 
 
 
Net investment income and realized losses on investment
 
 
 
 
 
 
 
43,899

Interest and amortization expenses
 
 
 
 
 
 
 
(4,829
)
Amortization of intangible assets
 
 
 
 
 
 
 
(462
)
Foreign exchange gains
 
 
 
 
 
 
 
4,821

Other general and administrative expenses
 
 
 
 
 
 
 
(7,585
)
Income tax expense
 
 
 
 
 
 
 
(255
)
Net income
 
 
 
 
 
 
 
$
2,680

 
 
 
 
 
 
 
 
 
Net loss and LAE ratio(1)
 
71.7
%
 
74.4
%
 
 
 
73.4
%
Commission and other acquisition expense ratio(2)
 
23.8
%
 
32.1
%
 
 
 
29.7
%
General and administrative expense ratio(3)
 
5.6
%
 
0.2
%
 
 
 
2.9
%
Expense ratio(4)
 
29.4
%
 
32.3
%
 
 
 
32.6
%
Combined ratio(5)
 
101.1
%
 
106.7
%
 
 
 
106.0
%

10

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, 2017
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Other
 
Total
Gross premiums written
 
$
140,841

 
$
564,276

 
$
81

 
$
705,198

Net premiums written
 
$
137,247

 
$
546,735

 
$
90

 
$
684,072

Net premiums earned
 
$
204,219

 
$
506,816

 
$
90

 
$
711,125

Other insurance revenue
 
1,547

 

 

 
1,547

Net loss and LAE
 
(176,837
)
 
(350,561
)
 
(1,222
)
 
(528,620
)
Commission and other acquisition expenses
 
(46,989
)
 
(163,055
)
 
5

 
(210,039
)
General and administrative expenses
 
(8,494
)
 
(664
)
 

 
(9,158
)
Underwriting loss
 
$
(26,554
)
 
$
(7,464
)
 
$
(1,127
)
 
(35,145
)
Reconciliation to net loss
 
 
 
 
 
 
 
 
Net investment income and realized gains on investment
 
 
 
 
 
 
 
42,084

Interest and amortization expenses
 
 
 
 
 
 
 
(6,745
)
Accelerated amortization of senior note issuance cost
 
 
 
 
 
 
 
(2,809
)
Amortization of intangible assets
 
 
 
 
 
 
 
(533
)
Foreign exchange losses
 
 
 
 
 
 
 
(6,722
)
Other general and administrative expenses
 
 
 
 
 
 
 
(6,188
)
Income tax expense
 
 
 
 
 
 
 
(277
)
Net loss
 
 
 
 
 
 
 
$
(16,335
)
 
 
 
 
 
 
 
 
 
Net loss and LAE ratio(1)
 
86.0
%
 
69.2
%
 
 
 
74.1
%
Commission and other acquisition expense ratio(2)
 
22.8
%
 
32.2
%
 
 
 
29.5
%
General and administrative expense ratio(3)
 
4.1
%
 
0.1
%
 
 
 
2.2
%
Expense ratio(4)
 
26.9
%
 
32.3
%
 
 
 
31.7
%
Combined ratio(5)
 
112.9
%
 
101.5
%
 
 
 
105.8
%


11

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, 2018
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Other
 
Total
Gross premiums written
 
$
441,463

 
$
1,065,413

 
$

 
$
1,506,876

Net premiums written
 
$
429,231

 
$
1,065,691

 
$

 
$
1,494,922

Net premiums earned
 
$
385,631

 
$
967,147

 
$

 
$
1,352,778

Other insurance revenue
 
5,759

 

 

 
5,759

Net loss and LAE
 
(274,173
)
 
(691,143
)
 
438

 
(964,878
)
Commission and other acquisition expenses
 
(97,410
)
 
(310,108
)
 
159

 
(407,359
)
General and administrative expenses
 
(21,026
)
 
(2,002
)
 

 
(23,028
)
Underwriting (loss) income
 
$
(1,219
)
 
$
(36,106
)
 
$
597

 
(36,728
)
Reconciliation to net income
 
 
 
 
 
 
 
 
Net investment income and realized losses on investment
 
 
 
 
 
 
 
87,126

Interest and amortization expenses
 
 
 
 
 
 
 
(9,658
)
Amortization of intangible assets
 
 
 
 
 
 
 
(924
)
Foreign exchange gains
 
 
 
 
 
 
 
2,414

Other general and administrative expenses
 
 
 
 
 
 
 
(16,496
)
Income tax expense
 
 
 
 
 
 
 
(711
)
Net income
 
 
 
 
 
 
 
$
25,023

 
 
 
 
 
 
 
 
 
Net loss and LAE ratio(1)
 
70.0
%
 
71.4
%
 
 
 
71.0
%
Commission and other acquisition expense ratio(2)
 
24.9
%
 
32.1
%
 
 
 
30.0
%
General and administrative expense ratio(3)
 
5.4
%
 
0.2
%
 
 
 
2.9
%
Expense ratio(4)
 
30.3
%
 
32.3
%
 
 
 
32.9
%
Combined ratio(5)
 
100.3
%
 
103.7
%
 
 
 
103.9
%


12

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, 2017
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Other
 
Total
Gross premiums written
 
$
472,886

 
$
1,155,658

 
$
81

 
$
1,628,625

Net premiums written
 
$
464,743

 
$
1,119,787

 
$
90

 
$
1,584,620

Net premiums earned
 
$
406,061

 
$
1,014,458

 
$
90

 
$
1,420,609

Other insurance revenue
 
5,328

 

 

 
5,328

Net loss and LAE
 
(315,486
)
 
(692,192
)
 
(1,511
)
 
(1,009,189
)
Commission and other acquisition expenses
 
(104,934
)
 
(327,139
)
 
5

 
(432,068
)
General and administrative expenses
 
(17,224
)
 
(1,469
)
 

 
(18,693
)
Underwriting loss
 
$
(26,255
)
 
$
(6,342
)
 
$
(1,416
)
 
(34,013
)
Reconciliation to net income
 
 
 
 
 
 
 
 
Net investment income and realized gains on investment
 
 
 
 
 
 
 
85,126

Interest and amortization expenses
 
 
 
 
 
 
 
(13,601
)
Accelerated amortization of senior note issuance cost
 
 
 
 
 
 
 
(2,809
)
Amortization of intangible assets
 
 
 
 
 
 
 
(1,066
)
Foreign exchange losses
 
 
 
 
 
 
 
(8,643
)
Other general and administrative expenses
 
 
 
 
 
 
 
(14,067
)
Income tax expense
 
 
 
 
 
 
 
(761
)
Net income
 
 
 
 
 
 
 
$
10,166

 
 
 
 
 
 
 
 
 
Net loss and LAE ratio(1)
 
76.7
%
 
68.3
%
 
 
 
70.8
%
Commission and other acquisition expense ratio(2)
 
25.5
%
 
32.2
%
 
 
 
30.3
%
General and administrative expense ratio(3)
 
4.2
%
 
0.1
%
 
 
 
2.3
%
Expense ratio(4)
 
29.7
%
 
32.3
%
 
 
 
32.6
%
Combined ratio(5)
 
106.4
%
 
100.6
%
 
 
 
103.4
%
(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.    
The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at June 30, 2018 and December 31, 2017:
June 30, 2018
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Total
Total assets - reportable segments
 
$
1,732,587

 
$
4,431,698

 
$
6,164,285

Corporate assets
 

 

 
553,903

Total Assets
 
$
1,732,587

 
$
4,431,698

 
$
6,718,188

 
 
 
 
 
 
 
December 31, 2017
 
Diversified Reinsurance
 
AmTrust Reinsurance
 
Total
Total assets - reportable segments
 
$
1,772,909

 
$
4,258,607

 
$
6,031,516

Corporate assets
 

 

 
612,673

Total Assets
 
$
1,772,909

 
$
4,258,607

 
$
6,644,189


13

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, 2018 and 2017:
For the Three Months Ended June 30,
 
2018
 
2017
Net premiums written
 
Total
 
% of Total
 
Total
 
% of Total
Diversified Reinsurance
 
 
 
 
 
 
 
 
Property
 
$
20,464

 
3.2
%
 
$
21,059

 
3.1
%
Casualty
 
90,418

 
14.0
%
 
84,219

 
12.3
%
Accident and Health
 
13,678

 
2.1
%
 
8,909

 
1.3
%
International
 
29,718

 
4.6
%
 
23,060

 
3.4
%
Total Diversified Reinsurance
 
154,278

 
23.9
%
 
137,247

 
20.1
%
AmTrust Reinsurance
 
 
 
 
 
 
 
 
Small Commercial Business
 
279,486

 
43.3
%
 
340,840

 
49.8
%
Specialty Program
 
103,196

 
16.0
%
 
100,082

 
14.6
%
Specialty Risk and Extended Warranty
 
108,629

 
16.8
%
 
105,813

 
15.5
%
Total AmTrust Reinsurance
 
491,311

 
76.1
%
 
546,735

 
79.9
%
Other
 

 
%
 
90

 
%
Total Net Premiums Written
 
$
645,589

 
100.0
%
 
$
684,072

 
100.0
%
For the Six Months Ended June 30,
 
2018
 
2017
Net premiums written
 
Total
 
% of Total
 
Total
 
% of Total
Diversified Reinsurance
 
 
 
 
 
 
 
 
Property
 
$
81,445

 
5.4
%
 
$
94,436

 
6.0
%
Casualty
 
213,358

 
14.3
%
 
261,777

 
16.5
%
Accident and Health
 
56,480

 
3.8
%
 
57,558

 
3.6
%
International
 
77,948

 
5.2
%
 
50,972

 
3.2
%
Total Diversified Reinsurance
 
429,231

 
28.7
%
 
464,743

 
29.3
%
AmTrust Reinsurance
 
 
 
 
 
 
 
 
Small Commercial Business
 
647,240

 
43.3
%
 
733,406

 
46.3
%
Specialty Program
 
192,327

 
12.9
%
 
191,951

 
12.1
%
Specialty Risk and Extended Warranty
 
226,124

 
15.1
%
 
194,430

 
12.3
%
Total AmTrust Reinsurance
 
1,065,691

 
71.3
%
 
1,119,787

 
70.7
%
Other
 

 
%
 
90

 
%
Total Net Premiums Written
 
$
1,494,922

 
100.0
%
 
$
1,584,620

 
100.0
%

14

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 earned by major line of business and reportable segment for the three and six months ended June 30, 2018 and 2017:
For the Three Months Ended June 30,
 
2018
 
2017
Net premiums earned
 
Total
 
% of Total
 
Total
 
% of Total
Diversified Reinsurance
 
 
 
 
 
 
 
 
Property
 
$
34,028

 
5.1
%
 
$
39,632

 
5.5
%
Casualty
 
107,588

 
16.1
%
 
121,563

 
17.1
%
Accident and Health
 
21,342

 
3.2
%
 
20,409

 
2.9
%
International
 
28,539

 
4.3
%
 
22,615

 
3.2
%
Total Diversified Reinsurance
 
191,497

 
28.7
%
 
204,219

 
28.7
%
AmTrust Reinsurance
 
 
 
 
 
 
 
 
Small Commercial Business
 
293,514

 
44.0
%
 
315,100

 
44.3
%
Specialty Program
 
96,739

 
14.5
%
 
92,262

 
13.0
%
Specialty Risk and Extended Warranty
 
85,596

 
12.8
%
 
99,454

 
14.0
%
Total AmTrust Reinsurance
 
475,849

 
71.3
%
 
506,816

 
71.3
%
Other
 

 
%
 
90

 
%
Total Net Premiums Earned
 
$
667,346

 
100.0
%
 
$
711,125

 
100.0
%
For the Six Months Ended June 30,
 
2018
 
2017
Net premiums earned
 
Total
 
% of Total
 
Total
 
% of Total
Diversified Reinsurance
 
 
 
 
 
 
 
 
Property
 
$
72,410

 
5.4
%
 
$
79,526

 
5.6
%
Casualty
 
216,234

 
15.9
%
 
244,713

 
17.2
%
Accident and Health
 
42,974

 
3.2
%
 
41,098

 
2.9
%
International
 
54,013

 
4.0
%
 
40,724

 
2.9
%
Total Diversified Reinsurance
 
385,631

 
28.5
%
 
406,061

 
28.6
%
AmTrust Reinsurance
 
 
 
 
 
 
 
 
Small Commercial Business
 
609,223

 
45.0
%
 
632,009

 
44.5
%
Specialty Program
 
185,233

 
13.7
%
 
192,010

 
13.5
%
Specialty Risk and Extended Warranty
 
172,691

 
12.8
%
 
190,439

 
13.4
%
Total AmTrust Reinsurance
 
967,147

 
71.5
%
 
1,014,458

 
71.4
%
Other
 

 
%
 
90

 
%
Total Net Premiums Earned
 
$
1,352,778

 
100.0
%
 
$
1,420,609

 
100.0
%


15

MAIDEN HOLDINGS, LTD.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(in thousands of U.S. dollars, except share and per share data)

4. Investments
a)
Fixed Maturities
The original or amortized cost, estimated fair value and gross unrealized gains and losses of fixed maturities at June 30, 2018 and December 31, 2017 are as follows:
June 30, 2018
 
Original or amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
AFS fixed maturities:
 
 
 
 
 
 
 
 
U.S. treasury bonds
 
$
8,610

 
$
41

 
$
(50
)
 
$
8,601

U.S. agency bonds – mortgage-backed
 
2,026,165

 
2,658

 
(61,750
)
 
1,967,073

U.S. agency bonds – other
 
39,920

 
24

 
(622
)
 
39,322

Non-U.S. government and supranational bonds
 
25,038

 
151

 
(1,702
)
 
23,487

Asset-backed securities
 
332,188

 
1,029

 
(2,443
)
 
330,774

Corporate bonds
 
1,630,174

 
11,393

 
(46,462
)
 
1,595,105

Municipal bonds
 
2,500

 
48

 

 
2,548

Total AFS fixed maturities
 
4,064,595

 
15,344

 
(113,029
)
 
3,966,910

Held-to-maturity ("HTM") fixed maturities:
 
 
 
 
 
 
 
 
Corporate bonds
 
979,018

 
6,131

 
(17,938
)
 
967,211

Municipal bonds
 
60,126

 

 
(665
)
 
59,461

Total HTM fixed maturities
 
1,039,144

 
6,131

 
(18,603
)
 
1,026,672

Total fixed maturity investments
 
$
5,103,739

 
$
21,475

 
$
(131,632
)
 
$
4,993,582

December 31, 2017
 
Original or amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
AFS fixed maturities:
 
 
 
 
 
 
 
 
U.S. treasury bonds
 
$
60,711

 
$
103

 
$
(13
)
 
$
60,801

U.S. agency bonds – mortgage-backed
 
2,026,305

 
8,074

 
(19,765
)
 
2,014,614

U.S. agency bonds – other
 
29,941

 
4

 
(163
)
 
29,782

Non-U.S. government and supranational bonds
 
33,381

 
231

 
(1,736
)
 
31,876

Asset-backed securities
 
317,544

 
4,065

 
(199
)
 
321,410

Corporate bonds
 
1,557,611

 
43,271

 
(17,571
)
 
1,583,311

Municipal bonds
 
2,500

 
76

 

 
2,576

Total AFS fixed maturities
 
4,027,993

 
55,824

 
(39,447
)
 
4,044,370

HTM fixed maturities:
 
 
 
 
 
 
 
 
Corporate bonds
 
1,037,464

 
28,694

 
(913
)
 
1,065,245

Municipal bonds
 
60,337

 
128

 
(84
)
 
60,381

Total HTM fixed maturities
 
1,097,801

 
28,822

 
(997
)
 
1,125,626

Total fixed maturity investments
 
$
5,125,794

 
$
84,646

 
$
(40,444
)
 
$
5,169,996

During the six months ended June 30, 2018, we did not designate any additional fixed maturities as HTM. During 2017, we designated additional fixed maturities with a fair value of $391,934 as HTM reflecting our intent to hold these securities to maturity. The net unrealized holding gain of $4,313 as at the designation date continues to be reported in the carrying value of the HTM securities and is amortized through other comprehensive income over the remaining life of the securities using the effective yield method in a manner consistent with the amortization of any premium or discount.

16

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 contractual maturities of our fixed maturities are shown 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.
 
 
AFS fixed maturities
 
HTM fixed maturities
June 30, 2018
 
Amortized cost
 
Fair value
 
Amortized cost
 
Fair value
Maturity
 
 
 
 
 
 
 
 
Due in one year or less
 
$
11,443

 
$
10,697

 
$
9,422

 
$
9,414

Due after one year through five years
 
658,875

 
646,888

 
357,489

 
357,601

Due after five years through ten years
 
1,034,775

 
1,010,399

 
671,172

 
658,641

Due after ten years
 
1,149

 
1,079

 
1,061

 
1,016

 
 
1,706,242

 
1,669,063

 
1,039,144

 
1,026,672

U.S. agency bonds – mortgage-backed
 
2,026,165

 
1,967,073

 

 

Asset-backed securities
 
332,188

 
330,774

 

 

Total fixed maturities
 
$
4,064,595

 
$
3,966,910

 
$
1,039,144

 
$
1,026,672

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, 2018
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury bonds
 
$
3,495

 
$
(30
)
 
$
580

 
$
(20
)
 
$
4,075