Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 120

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 120
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 potential retrocession of the AmTrust reinsurance liabilities. Maiden also continued direct discussions with the previously contacted leading participant in the legacy reinsurance market.

On July 11, 2024, Maiden management met with representatives of Kestrel, IAP and Evercore at Evercore’s offices in New York. The representatives of Kestrel provided an update on the state of the fronting market, generally, and the specific opportunities they believed were available for growth of the Kestrel business, including Kestrel’s pipeline. In addition, the parties also discussed various other topics, including Kestrel’s projections, Maiden’s reserve profile and portfolio of alternative investments, personnel of the combined company and the status of each party’s due diligence review of the other party.

On July 14, 2024, representatives of Skadden provided an initial draft of the combination agreement to representatives of Paul, Weiss and Kramer Levin.

Between July 15, 2024 and August 21, 2024, drafts of the combination agreement and ancillary agreements (including, among others, the voting agreements in support of the transaction and the purchase

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agreement with respect to the acquisition of the AmTrust Insurance Companies) were exchanged among representatives of Paul, Weiss, Skadden and Kramer Levin. During this period, the parties exchanged comments with respect to, among other things, the structure of the potential transaction, termination rights and related termination fees, governance of the combined company and required efforts and related parameters and/or adjustments with respect to the potential earnout consideration. During this period, Maiden and AmTrust engaged in extensive discussions regarding the Commutation, including the payment that Maiden would be required to make to AmTrust (and charges that Maiden was likely to subsequently incur) in connection with the Commutation. During that same period, Maiden, with assistance of its independent third-party actuary, as well as a third-party market reinsurance company conducted detailed claims and actuarial diligence on the AmTrust reinsurance liabilities that could potentially be retroceded to such third party. At the same time, Maiden’s independent reinsurance broker continued to engage with other reinsurance companies regarding a potential retrocession of certain of Maiden’s AmTrust reinsurance liabilities. Also, during this period, the parties began to discuss a revised transaction perimeter in which less than all the AmTrust Insurance Companies would be acquired to reduce the upfront cash needed to complete the transaction and the impact on the combined company’s liquidity.

The Maiden