Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 270

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 270
---
 30, 2025, book value per common share increased to $18.57 and diluted book value per common share increased to $18.25, compared to $1.67 at December 31, 2024. This was due to the Combination completed on May 27, 2025, which produced substantially all of the increase in shareholders' equity for the nine months ended September 30, 2025 as described in discussed in Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) "Note 1. Basis of Presentation" and "Note 15. Business Combination" included in this Form 10-Q.

Capital resources consist of funds deployed in support of our operations. The following table shows the movement in our capital resources at September 30, 2025 and December 31, 2024:

 September 30, 2025December 31, 2024Change in $($ in thousands)  Common shares at par value$100 $27 $73 Additional paid-in capital177,101 10,107 166,994 Accumulated other comprehensive loss(916)— (916)Retained earnings (accumulated deficit)18,952 (5,528)24,480 Treasury shares, at cost(51,463)— (51,463)Total Kestrel shareholders' equity143,774 4,606 139,168 Senior Notes - carrying value262,361 — 262,361 Total capital resources$406,135 $4,606 $401,529 

 78

Total capital resources increased by $401.5 million compared to December 31, 2024 due to the following items:

•retained earnings increased by $24.5 million due to net income of $64.5 million reported for the nine months ended September 30, 2025 partly offset by a $40.0 million cash distribution to shareholders at closing of the Combination;

•additional paid-in capital increased by $167.0 million largely due to common shares issued as consideration for the Combination of $166.5 million as well as stock based compensation expense of $0.5 million;

•AOCI decreased by $0.9 million driven by: (1) net unrealized gains of $0.7 million on our AFS investment portfolio due to market price movements in the nine months ended September 30, 2025, and (2) a