Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 51

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 51
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 plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. Maiden Holdings is required to give at least thirty days and not more than sixty days notice prior to the redemption date.

 34

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

8. Reinsurance 

The Company uses reinsurance and retrocessional agreements ("ceded reinsurance") to mitigate volatility, reduce its exposure to certain risks and provide capital support. Ceded reinsurance provides for the recovery of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders. The Company remains liable to the extent that any of its reinsurers or retrocessionaires fails to meet their obligations. Loss and LAE incurred and premiums earned are reported after deduction for ceded reinsurance. In the event that one or more of our reinsurers or retrocessionaires are unable to meet their obligations under these agreements, the Company would not realize the full value of the reinsurance recoverable balances. The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the six months ended June 30, 2025 was as follows: For the Six Months Ended June 30,2025Premiums writtenDirect$1,379 Assumed(283)Ceded(1)Net$1,095 Premiums earnedDirect$1,384 Assumed1,039 Ceded(1)Net$2,422 Loss and LAEGross loss and LAE$(6,171)Loss and LAE ceded210 Net$(5,961)The Company's reinsurance recoverable on unpaid losses balance as at June 30, 2025 was $520,520 presented in the Condensed Consolidated Balance Sheets. As of June 30, 2025, the total allowance for expected credit losses on the Company's reinsurance recoverable balance was $1,655. The following table provides a reconciliation of the beginning and ending balances of the allowance for expected credit losses on reinsurance recoverable for the three and six months ended June 30, 2025:For the Three and Six Months Ended June 30,2025Allowance for expected credit losses on reinsurance recoverable, beginning of period$— Expected credit losses on recoverables where credit losses were not previously recognized