Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 76

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 76
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 47

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

12. Earnings per Common Share

The following shows a summary of the elements used in calculating basic and diluted earnings per common share for the three and six months ended June 30, 2025 and 2024, respectively:For the Three Months Ended June 30,For the Six Months Ended June 30, 2025202420252024Numerator:Net income from continuing operations$70,422 $(547)$70,028 $(924)Amount allocated to participating common shareholders(1)(186)— (116)— Income available to Kestrel common shareholders before discontinued operations70,236 (547)69,912 (924)Loss from discontinued operations, net of income tax(495)— (495)— Amount of loss from discontinued operations allocated to participating common shareholders(1)1 — 1 — Net income attributable to Kestrel common shareholders$69,742 $(547)$69,418 $(924)Denominator:Weighted average number of common shares – basic and diluted(1)4,635,406 2,749,996 3,692,701 2,749,996 Basic and diluted earnings from continuing operations per share attributable to Kestrel shareholders$15.16 $(0.20)$18.93 $(0.34)Basic and diluted loss from discontinued operations per share attributable to Kestrel shareholders(0.11)— (0.13)— Basic and diluted earnings per share attributable to Kestrel shareholders:$15.05 $(0.20)$18.80 $(0.34)(1) There were no potentially dilutive securities for the three and six months ended June 30, 2025 and 2024.

13. Income Taxes

The Company recognized income tax expense of $3 and $95 for the three and six months ended June 30, 2025 compared to $0 for the same respective periods in 2024 . The effective tax rate on the Company's net income differs from the statutory rate of zero percent under Bermuda law due to tax on foreign operations, primarily the U.S. A valuation allowance has been established against the net U.S. and International deferred tax assets which is primarily attributable to net operating losses in the respective regions. At