Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 31

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 31
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ination period of May 28, 2025 to September 30, 2025.

 22

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

4. Investments

The Company holds: (i) available-for-sale ("AFS") portfolios of fixed maturity and equity securities, carried at fair value; (ii) other investments carried at fair value; (iii) equity method investments using equity method accounting; and (iv) funds held - directly managed.a)Fixed MaturitiesThe amortized cost, gross unrealized gains and losses, and fair value of fixed maturities at September 30, 2025 are as follows: September 30, 2025Original or amortized costGross unrealized gainsGross unrealized lossesFair valueU.S. treasury bonds$38,729 $1 $— $38,730 U.S. agency bonds – mortgage-backed21,430 692 — 22,122 Non-U.S. government bonds52,680 — (57)52,623 Collateralized loan obligations68,366 80 (7)68,439 Corporate bonds16,736 8 — 16,744 Total fixed maturity investments$197,941 $781 $(64)$198,658 December 31, 2024Original or amortized costGross unrealized gainsGross unrealized lossesFair valueThe Company separately presents the accrued interest receivable balance on its AFS fixed maturity investments on the Condensed Consolidated Balance Sheets under accrued investment income. The amount of accrued interest receivable on AFS securities was $727 at September 30, 2025.  The Company has elected the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of the AFS fixed maturity securities for the purposes of identifying and measuring any impairments under the allowance for expected credit losses standard. Write-offs of accrued interest receivable balances are recognized in net investment gains and losses in the period in which they are deemed uncollectible. There was no write-off recognized on the accrued interest receivable during the three and nine months ended September 30, 2025.The contractual maturities of our fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to