Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 105

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 105
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 to net foreign exchange and other losses of $0.0 million for the same periods in 2024. 

For the three months ended September 30, 2025, net foreign exchange gains of $2.9 million were attributable to appreciation of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro. Foreign exchange losses of $2.2 million for the nine months ended September 30, 2025 were attributable to significant weakening of the U.S. dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

  Our non-USD denominated liabilities at September 30, 2025 included net loss reserves of $310.8 million. Our foreign currency asset exposures at September 30, 2025 included $137.8 million of fixed maturity euro denominated bonds managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $32.5 million of real estate investments denominated in Canadian dollars, as well as $11.9 million of funds withheld receivable denominated in euro. 

Underwriting Results by Reportable Segment

Program Services Segment

The segment results for Program Services for the three and nine months ended September 30, 2025 were as follows: 

For the Three Months Ended September 30,For the Nine Months Ended September 30,($ in thousands)2025202420252024Fee revenue$1,621 $700 $2,972 $2,457 General and administrative expenses(664)(590)(2,003)(1,990)Fee income$957 $110 $969 $467 

Program Services segment results for the three and nine months ended September 30, 2025 increased by $0.8 million and $0.5 million, respectively, compared to the same periods in 2024 due to increased premium volume from both new and existing client programs.. Increased premium volume accounted for $1.1 million and $0.5 million of fee revenue for the three and nine months ended September 30, 2025, respectively. The Company continues to actively pursue reinsurance mechanisms with its existing partners that would selectively deploy the Company’s underwriting capacity and facilitate and accelerate both its fee and premium revenue growth. 

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Legacy Reinsurance Segment

The following details underwriting results for the two components of our Legacy Reinsurance segment which is