Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 333

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 333
---
Non-GAAP Measures

Please refer to our Key Financial Measures presented in the "Overview to Critical Accounting Policies" section for financial measures in accordance with GAAP in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Income and Comprehensive Income. In addition, management uses certain non-GAAP financial measures to evaluate the Company's financial performance and the overall growth in value generated for the Company’s common shareholders. Management believes that these measures, which may be defined differently by other companies, explain the Company’s results to investors in a manner that allows for a more complete understanding of the underlying trends in the Company’s business. These non-GAAP financial measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP and are summarized in Key Financial Measures presented in the "Overview to Critical Accounting Policies" section.

Non-GAAP operating loss was $15.1 million for the three months ended September 30, 2025 compared to non-GAAP operating loss of $0.4 million for the same period in 2024. Non-GAAP operating loss was $12.0 million for the nine months ended September 30, 2025, compared to non-GAAP operating loss of $1.4 million for the nine months ended September 30, 2024. 

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 income or loss available to common shareholders (as defined above) divided by average common shareholders' equity. 

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

For the Three Months Ended September 30,For the Nine Months Ended September 30,($ in thousands)2025202420252024Non-GAAP operating loss$(15,091)$(429)$(12,023)$(1,353)Opening adjusted shareholders’ equity150,086 4,913 4,606 5,837 Ending adjusted shareholders’ equity143,774 4,484 143,774 4,484 Average adjusted shareholders’ equity146,930 4,699 74,190 5,161 Non-GAAP Operating ROACE(40.7)%(36.3)%(21.7)%(35.0)% 

 81

The calculation,