| Schedule II Condensed Financial Information of Parent Company |
Schedule II MAIDEN HOLDINGS, LTD.
CONDENSED BALANCE SHEETS — PARENT COMPANY
As of December 31, 2015 and 2014 (In thousands of U.S. dollars, except share and per share data)
| | | | | | | | | | | | 2015 | | 2014 | Assets | | | | | Fixed maturities, available-for-sale, at fair value (Amortized cost 2015: $42,774; 2014: $43,995) | | $ | 40,189 |
| | $ | 44,270 |
| Other investments, at fair value (Cost 2015: $5,000; 2014: $5,000) | | 4,905 |
| | 5,990 |
| Cash and cash equivalents | | 3,606 |
| | 6,894 |
| Investment in subsidiaries | | 1,736,707 |
| | 1,591,000 |
| Balances due from subsidiaries | | 120,100 |
| | 99,809 |
| Other assets | | 1,123 |
| | 1,387 |
| Total assets | | $ | 1,906,630 |
| | $ | 1,749,350 |
| Liabilities | | | | | Accrued expenses and other liabilities | | $ | 12,217 |
| | $ | 11,226 |
| Balances due to subsidiaries | | 546,592 |
| | 497,430 |
| Total liabilities | | 558,809 |
| | 508,656 |
| Shareholders’ equity | | | | | Preference shares | | 480,000 |
| | 315,000 |
| Common shares ($0.01 par value; 74,735,785 and 73,900,889 shares issued in 2015 and 2014, respectively; 73,721,140 and 72,932,702 shares outstanding in 2015 and 2014, respectively) | | 747 |
| | 739 |
| Additional paid-in capital | | 579,178 |
| | 578,445 |
| Accumulated other comprehensive income | | (23,767 | ) | | 95,293 |
| Retained earnings | | 316,184 |
| | 255,084 |
| Treasury shares, at cost (1,014,645 and 968,187 shares in 2015 and 2014, respectively) | | (4,521 | ) | | (3,867 | ) | Total shareholders’ equity | | 1,347,821 |
| | 1,240,694 |
| Total liabilities and shareholders’ equity | | $ | 1,906,630 |
| | $ | 1,749,350 |
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Schedule II MAIDEN HOLDINGS, LTD.
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME — PARENT COMPANY
For the Years Ended December 31, 2015, 2014 and 2013
(In thousands of U.S. dollars) | | | | | | | | | | | | | | For the Year Ended December 31, | | 2015 | | 2014 | | 2013 | Revenues | | | | | | | Net investment income | | $ | 2,034 |
| | $ | 4,892 |
| | $ | 2,773 |
| Net realized gains on investment | | 20 |
| | 981 |
| | — |
| Other fee revenue | | 1,321 |
| | — |
| | — |
| | | 3,375 |
| | 5,873 |
| | 2,773 |
| Expenses | | | | | | | General and administrative expenses | | 16,319 |
| | 14,588 |
| | 11,732 |
| Foreign exchange losses (gains) | | 668 |
| | 893 |
| | (626 | ) | | | 16,987 |
| | 15,481 |
| | 11,106 |
| Loss before equity in earnings of consolidated subsidiaries | | (13,612 | ) | | (9,608 | ) | | (8,333 | ) | Equity in earnings of consolidated subsidiaries | | 138,088 |
| | 110,999 |
| | 111,068 |
| Net income | | 124,476 |
| | 101,391 |
| | 102,735 |
| Dividends on preference shares | | (24,337 | ) | | (24,337 | ) | | (14,834 | ) | Net income attributable to Maiden common shareholders | | $ | 100,139 |
| | $ | 77,054 |
| | $ | 87,901 |
| | | | | | | | Comprehensive income (loss) attributable to Maiden | | $ | 5,416 |
| | $ | 170,900 |
| | $ | (12,611 | ) |
Schedule II MAIDEN HOLDINGS, LTD.
CONDENSED STATEMENTS OF CASH FLOWS — PARENT COMPANY
For the Years Ended December 31, 2015, 2014 and 2013
(In thousands of U.S. dollars) | | | | | | | | | | | | | | For the Year Ended December 31, | | 2015 | | 2014 | | 2013 | Cash flows provided by operating activities | | | | | | | Net income | | $ | 124,476 |
| | $ | 101,391 |
| | $ | 102,735 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | Equity in earnings of consolidated subsidiaries | | (138,088 | ) | | (110,999 | ) | | (111,068 | ) | Amortization of bond premium and discount | | 222 |
| | 414 |
| | 1,209 |
| Net realized gains on investment | | (20 | ) | | (981 | ) | | — |
| Foreign exchange losses (gains) | | 668 |
| | 893 |
| | (626 | ) | Non-cash share compensation expense | | 2,938 |
| | 3,334 |
| | 2,205 |
| Changes in assets - (increase) decrease: | | | | | | | Balance due from subsidiaries | | (20,930 | ) | | (87,605 | ) | | 42,899 |
| Other assets | | 237 |
| | 536 |
| | (862) |
| Changes in liabilities - increase (decrease) | | | | | | | Accounts payable and accrued liabilities | | 12 |
| | (138 | ) | | 736 |
| Balances due to subsidiaries | | 49,162 |
| | 120,069 |
| | 16,642 |
| Net cash provided by operating activities | | 18,677 |
| | 26,914 |
| | 53,870 |
| Cash flows used in investing activities | | | | | | | Purchases of fixed-maturities – available-for-sale | | — |
| | (1,340 | ) | | (170,882 | ) | Purchases of other investments | | — |
| | (5,000 | ) | | — |
| Proceeds from sales of fixed-maturities – available-for-sale | | 1,041 |
| | 87,032 |
| | 90,515 |
| Proceeds from maturities and calls of fixed maturities | | — |
| | 6,857 |
| | 46,208 |
| Investment in subsidiaries | | (122,757 | ) | | (84,740 | ) | | (116,807 | ) | Net cash (used in) provided by investing activities | | (121,716 | ) | | 2,809 |
| | (150,966 | ) | Cash flows used in financing activities | | | | | | | Preference shares issuance, net of issuance costs | | 159,628 |
| | — |
| | 159,675 |
| Dividends paid - preference shares | | (24,337 | ) | | (24,337 | ) | | (14,834 | ) | Dividends paid - Maiden common shareholders | | (38,204 | ) | | (32,079 | ) | | (19,607 | ) | Issuance of common shares | | 3,318 |
| | 592 |
| | 1,776 |
| Repurchase of common shares | | (654 | ) | | (66 | ) | | — |
| Net cash provided by (used in) financing activities | | 99,751 |
| | (55,890 | ) |
| 127,010 |
| Net (decrease) increase in cash and cash equivalents | | (3,288 | ) | | (26,167 | ) | | 29,914 |
| Cash and cash equivalents, beginning of year | | 6,894 |
| | 33,061 |
| | 3,147 |
| Cash and cash equivalents, end of year | | $ | 3,606 |
| | $ | 6,894 |
| | $ | 33,061 |
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