Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 111

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 111
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 policy as described above, we are actively looking to dispose of these assets to further improve our liquidity position and strengthen our ability to grow.

Further, the returns of these investments may be more volatile and we may experience significant unrealized gains or losses in any particular quarter or year. While we believe the returns produced by these investments will exceed our cost of capital, in particular our cost of debt capital, it is too soon to determine if the actual returns will achieve this objective and it may be an extended period of time before that determination can be made.

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We may utilize and pay fees to various companies to provide investment advisory and/or management services related to these investments. These fees, which would be predominantly based upon the amount of assets under management, would be included in net investment income. In addition, costs associated with evaluating, analyzing and monitoring these investments may require additional expenditures than traditional marketable securities. 

Cash & Cash Equivalents

At June 30, 2025, we consider the levels of cash and cash equivalents held to be within our targeted ranges. During periods when interest rates experience greater volatility, we have periodically maintained more cash and cash equivalents to better assess current market conditions and opportunities within our defined risk appetite, and may do so in future periods.

Fixed Maturity Investments

The average yield and average duration of our fixed maturities, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at June 30, 2025 and December 31, 2024:

June 30, 2025Original or Amortized CostGross Unrealized GainsGross Unrealized LossesFair ValueAverage yield(1)Average duration(2)($ in thousands)U.S. treasury bonds$43,911 $— $— $43,911 4.3 %0.1 U.S. agency bonds – mortgage-backed21,963 506 (2)22,467 5.3 %5.7 Non-U.S. government bonds54,005 2 (31)53,976 1.9 %0.8 Collateralized loan obligations68,684 7 (5)68,686 3.3 %0.3 Corporate bonds16,760 4 (3)16,761 2.5 %1.5 Total fixed maturities205,323 519 (41)205,801 3.3