Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 45

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 45
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Other investments— — 132,958 38,833 171,791 Total investments$38,730 $159,928 $144,308 $38,833 $381,799 As a percentage of total assets3.4%14.1%12.8%3.4%33.7%Underwriting-related derivative liability$— $— $3,984 $— $3,984 December 31, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Fair Value Based on NAV Practical ExpedientTotal Fair ValueThe Company utilizes the Pricing Service to assist in determining the fair value of its investments; however, management is ultimately responsible for all fair values presented in the Company’s consolidated financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices, and pricing of assets and liabilities and use of pricing sources. The Company analyzes and reviews the information and prices received from the Pricing Service to ensure that the prices provided represent a reasonable estimate of fair value.The Pricing Service was utilized to estimate fair value measurements for 100.0% of our fixed maturities at September 30, 2025. The Pricing Service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury bonds generally do not trade actively on a daily basis, the Pricing Service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing and these have been classified as Level 2 within the fair value hierarchy. At September 30, 2025, the Company did not adjust any pricing provided to it based on the review performed by its investment managers. There were no transfers to or from Level 3 during the three and nine months ended September 30, 2025, respectively.(c) Level 3 Financial InstrumentsAt September 30, 2025, the Company holds Level 3 financial instruments which currently consist of alternative investments of $144,308 and an underwriting-related derivative liability of $3,984 on a reinsurance contract written by GLS which is included in accrued expenses and other liabilities. The Level 3 investments include collateralized investments in direct lending entities of $53,616 at September 30, 2025 which are carried at fair market value using significant unobservable inputs. These