Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 100

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 100
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6,836 For the Nine Months Ended September 30,20252024Change in($ in thousands)TotalTotal$Diversified Reinsurance Legacy Business$5,266 $— $5,266 AmTrust Reinsurance Legacy Business3,992 — 3,992 Total Legacy Reinsurance Segment(1)$9,258 $— $9,258 

(1) Legacy Reinsurance segment results only include the post-combination period of May 28, 2025 to June 30, 2025.

Net premiums earned under Diversified Reinsurance legacy business for the three and nine months ended September 30, 2025 were $3.9 million and $5.3 million, respectively. Maiden LF and Maiden GF are no longer writing new business and their non-underwriting related assets and liabilities are represented as held-for-sale in our condensed consolidated financial statements as discussed above. 

Net premiums earned under AmTrust Reinsurance legacy business for the three and nine months ended September 30, 2025 were $3.0 million and $4.0 million, respectively. Please refer to the analysis below of our Diversified Reinsurance and AmTrust Reinsurance under the Maiden Legacy segment further below for further details.

Fee Revenue 

Fee Revenue is primarily produced by our Program Services segment. Revenue is measured as the amount of consideration Kestrel expects to receive in exchange for providing services to its customer and is generally governed by its managed service agreement. This agreement outlines the structure of the Authorized Program for which Kestrel oversees the placement of effective insurance policies in exchange for a fee. These agreements may also include other provisions, such as minimum fee arrangements or cancellation provisions, which may impact revenue recognition.

Capacity distribution fees are collected from program managers or MGAs for the placement of effective insurance policies on behalf of our customer, which is considered a single performance obligation. Support services provided for these insurance and reinsurance brokerage arrangements include compliance and regulatory reporting and administrative support which culminate in the placement of bound insurance coverage.

Fee revenue earned for the three and nine months ended September 30, 2025 was $1.6 million and $3.0 million, respectively, compared to $0.7 million and $2.5 million for the same periods in 2024, respectively. Fee revenue increased by $0.9 million and $0.5 million compared to the respective prior periods in 2024 primarily due to increased premium volume from both new and existing client