Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 111

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 111
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 sufficiently offset by investing cash flows. The consideration and related significant expenses associated with completing the combination has utilized substantial amounts of Maiden's current unrestricted liquidity. While we continue to expect our cash flows to be sufficient to meet our cash requirements and to operate our business, as our reinsurance liabilities continue to run-off our balance sheet increasingly consists of more illiquid securities which we are seeking to dispose of for more liquid assets. Our inability to monetize these illiquid assets on a timely basis while fulfilling our ongoing obligations may restrain our liquidity further and we may need to consider measures to ensure we continue to fulfill those obligations. 

Further, while no new alternative asset commitments have been or will be made, Maiden's historical asset management strategy which was part of the Combination can be impacted by both investment specific and broader financial market 

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conditions and may not produce the expected liquidity and cash flows these investments are designed to achieve, or the timing thereof may also be impacted by those factors.

At September 30, 2025, unrestricted cash, cash equivalents and fixed maturity investments were $27.6 million compared to $4.3 million held at December 31, 2024, an increase of $23.3 million during the nine months ended September 30, 2025.  This was a result of the Combination on May 27, 2025, in which the Company acquired significant investable assets. Please see the related discussion on investing and financing cash flows below. The table below summarizes our operating, investing and financing cash flows for the nine months ended September 30, 2025 and 2024: 

For the Nine Months Ended September 30,20252024($ in thousands)Operating activities$(30,436)$(1,052)Investing activities104,412 — Financing activities(40,000)— Effect of exchange rate changes on foreign currency cash496 — Total increase (decrease) in cash, restricted cash and cash equivalents$34,472 $(1,052)

Cash Flows used in Operating Activities

Cash flows used in operating activities for the nine months ended September 30, 2025 was $30.4 million compared to cash flows used in operating activities of $1.1 million for the nine months ended September 30, 2024.  The increase in cash used in operating activities for the nine months ended September 30, 2025 was due to claim payments for ongoing runoff of reinsurance liabilities. 

Cash Flows provided by Investing Activities

 Cash