Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 39

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 39
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 other comprehensive income ("AOCI") were as follows at September 30, 2025: September 30, 2025Net unrealized gains on fixed maturity investments$717 Net unrealized losses on held for sale AFS investments(13)Total net unrealized losses704 Deferred income tax— Net unrealized gains, net of deferred income tax$704 Change, net of deferred income tax$704 e)Restricted Cash and Cash Equivalents and Investments The Company is required to provide collateral for its reinsurance liabilities under various reinsurance agreements and utilizes trust accounts to collateralize business with reinsurance counterparties. The assets in trust as collateral are primarily cash and highly rated fixed maturities. The fair values of the Company's restricted assets at September 30, 2025 are:September 30, 2025  Restricted cash – third party agreements$24,097   Restricted cash – related party agreements3,537   Total restricted cash27,634 Restricted investments – in trust for third party agreements at fair value (amortized cost 2025: $49,330)49,690 Restricted investments – in trust for related party agreements at fair value (amortized cost 2025: $142,281)142,448 Restricted investments – liability for investments purchased for related party agreements(8,167)Total restricted investments183,971 Total restricted cash and investments$211,605 

 28

KESTREL GROUP LTD NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)(in thousands of U.S. dollars, except share and per share data)

5. Fair Value of Financial Instruments

(a) Fair Values of Financial InstrumentsFair Value Measurements — Accounting Standards Codification Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. Additionally, ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs:•Level 1 — Valuations based on unadjusted quoted market prices for identical assets or liabilities that we have the ability to access. Because