Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 317

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 317
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 discontinued operations0.13 — Change in fair value of earn out consideration0.73 — Non-GAAP diluted operating earnings (loss) per share attributable to common shareholders$0.80 $(0.34)

Non-GAAP operating earnings was $3.5 million for the three months ended June 30, 2025 compared to non-GAAP operating loss of $0.5 million for the same period in 2024. Non-GAAP operating earnings was $3.1 million for the six months ended June 30, 2025, compared to non-GAAP operating loss of $0.9 million for the six months ended June 30, 2024. 

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Non-GAAP Operating ROACE

Non-GAAP Operating Return on Average Common Equity ("Non-GAAP Operating ROACE"): Management uses non-GAAP operating return on average common shareholders' equity as a measure of profitability that focuses on the return to common shareholders. It is calculated using non-GAAP operating earnings available to common shareholders (as defined above) divided by average common shareholders' equity. 

Non-GAAP Operating ROACE for the three and six months ended June 30, 2025 and 2024 was as follows:

For the Three Months Ended June 30,For the Six Months Ended June 30,($ in thousands)2025202420252024Non-GAAP operating earnings (loss)$3,462 $(547)$3,068 $(924)Opening adjusted shareholders’ equity4,227 5,460 4,606 5,837 Ending adjusted shareholders’ equity150,085 4,913 150,085 4,913 Average adjusted shareholders’ equity77,156 5,187 77,346 5,375 Non-GAAP Operating ROACE18.0 %(42.4)%8.0 %(34.6)%

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Currency and Foreign Exchange 

We conduct business in a variety of foreign (non-U.S.) currencies, exclusively in our Legacy Reinsurance sgement, the principal exposures being the euro and the British pound. Assets and liabilities denominated in foreign currencies are exposed to changes in currency exchange rates. Our reporting currency is the U.S. dollar, and exchange rate fluctuations relative to the U.S. dollar may materially impact our results and financial position. Our principal exposure to foreign currency risk is our obligation to settle claims in foreign currencies. In addition, in order to minimize this risk, we maintain and expect to