Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 154

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1A
Chunk 154
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 not operated for a sufficient amount of time to conclude that the material weakness has been remediated. 

Because we identified a material weakness and have not remediated it in the current fiscal year, our disclosure controls and procedures and internal control over financial reporting may not be sufficient to ensure that material information is timely and accurately disclosed, which may adversely affect investor confidence and our ability to file timely reports with the SEC.  Despite management’s ongoing efforts, the material weakness in our disclosure controls could result in material misstatements in our financial statements, which could harm our reputation, result in regulatory scrutiny, or lead to corrective action.  Further, integration of the legacy Kestrel and Maiden businesses can also expose us to risks that material weaknesses may not be promptly resolved, potentially delaying completion of our consolidated internal control assessment and impairing our financial reporting.

Technology breaches or failures, including, but not limited to, those resulting from cyber-attacks on Kestrel Group or its business partners and service providers, could disrupt or otherwise negatively impact Kestrel Group’s business.

Kestrel Group’s information technology systems are vulnerable to data breaches, interruptions or failures due to events that may be beyond its control, including, but not limited to, natural disasters, theft, terrorist attacks, computer viruses, hackers and general technology failures. Kestrel Group’s information technology systems will include the Internet and third-party hosted services. Kestrel Group will use information systems to process financial information and results of operations for internal reporting purposes and for regulatory financial reporting, legal and tax requirements. Kestrel Group may also use information systems for electronic communications with customers and its various locations. 

A shutdown or inability to access one or more of its facilities, a power outage, a security breach, or a failure of one or more of its information technology, telecommunications or other systems could significantly impair Kestrel Group’s ability to perform such functions on a timely basis. These incidents could be caused by malicious or disruptive software, computer hackers, rogue employees, cyber-attacks, failures of telecommunications systems or other catastrophic events. If sustained or repeated, such a business interruption, system failure or service denial could result in a deterioration of Kestrel Group’s ability to write and process business, provide customer service, pay claims in a timely manner or perform other necessary business functions. Furthermore, a significant portion of the communications between Kestrel Group’s employees and its business, banking and investment partners will depend on information technology and electronic information exchange. In addition, Kestrel Group may suffer financial and reputational