Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 294

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 294
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 ended June 30, 2025 and 2024: 

For the Six Months Ended June 30,20252024($ in thousands)Operating activities$(20,738)$(566)Investing activities88,333 — Financing activities(40,000)— Effect of exchange rate changes on foreign currency cash661 — Total increase (decrease) in cash, restricted cash and cash equivalents$28,256 $(566)

Cash Flows used in Operating Activities

Cash flows used in operating activities for the six months ended June 30, 2025 was $20.7 million compared to cash flows used in operating activities of $0.6 million for the six months ended June 30, 2024.  The increase in cash used in operating activities for the six months ended June 30, 2025 was due to claim payments for ongoing runoff of reinsurance liabilities. 

Cash Flows provided by Investing Activities

 Cash provided by investing activities was $88.3 million for the six months ended June 30, 2025 compared to net cash used in investing activities of $0.0 million for the same period in 2024. Cash flows provided by investing activities for the six months ended June 30, 2025 was primarily due to $79.8 million of cash acquired from the purchase of Maiden business due to the Combination which closed on May 27, 2025.

For the six months ended June 30, 2025, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $10.1 million. The size of the fixed income investment portfolio will diminish as claims payments continued to be made in the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share contracts. 

For the six months ended June 30, 2025 and 2024, investing cash flows included purchases of alternative investments which exceeded proceeds from the sales and redemptions. There were net purchases of $1.6 million for alternative investments during the six months ended June 30, 2025 compared to net purchases of alternative investments of $0.0 million for the same period in 2024. These net purchases were mainly due to pre-existing commitments for private equity fund investments for the six months ended June 30, 2025.

Cash Flows used in Financing Activities

Cash flows used in financing activities were $40.0 million for the six months ended June 30