Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 314

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 314
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 at its Special Meeting on April 29, 2025. Treasury shares include 2,237,534 common shares owned by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at September 30, 2025. The market value of our common shares held by Maiden Reinsurance was $61.1 million at September 30, 2025.

Accordingly, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at September 30, 2025. Further, as Maiden's insurance liabilities continue to run-off and the required capital to operate its business for regulatory purposes decreased, as previously discussed Maiden had expanded Maiden Reinsurance’s investment policy, which had been approved by the Vermont DFR. Under this investment policy, Maiden expanded the range of asset classes it invested in to enhance the income and total returns its investment portfolio produces. We categorize these investments as alternative investments which include "Other Investments", "Equity Method Investments" and "Equity Securities" on our Condensed Consolidated Balance Sheets. As of September 30, 2025 and December 31, 2024, our cash and investments consisted of:

 September 30, 2025December 31, 2024 ($ in thousands)Fixed maturities, available-for-sale, at fair value$198,658 $— Equity securities, at fair value11,350 — Equity method investments32,518 — Other investments171,791 — Total investments414,317 — Cash and cash equivalents12,890 4,286 Restricted cash and cash equivalents27,634 — Total Investments and Cash and Cash Equivalents$454,841 $4,286 

In addition to the discussion on Cash and Cash Equivalents and Fixed Maturities that follows herein, please see the "Notes to Condensed Consolidated Financial Statements (unaudited) Note 4. Investments" included under Part I Item 1 "Financial Information" of this Form 10-Q for further discussion on our AFS fixed income securities.

The net purchases of other investments for the nine months ended September 30, 2025 were due to securities transactions executed after the completion of the Combination. Other than purchases due to pre-existing commitments for private equity funds, we will not be making new commitments to alternative investments in the foreseeable future.

Under Maiden Reinsurance's then applicable investment policy,