Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 3

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 3
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See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

 5

KESTREL GROUP LTD

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)

(in thousands of U.S. dollars)

For the Three Months Ended September 30,For the Nine Months Ended September 30,2025202420252024Common sharesBeginning balance$100 $27 $27 $27 Shares issued on Combination Agreement— — 73 — Ending balance100 27 100 27 Additional paid-in capitalBeginning balance176,885 10,047 10,107 10,047 Share-based compensation expense216 — 455 — Shares issued as consideration for Combination — — 166,539 — Ending balance177,101 10,047 177,101 10,047 Accumulated other comprehensive lossBeginning balance559 — — — Change in net unrealized investment gains219 — 704 — Foreign currency translation adjustment(1,694)— (1,620)— Ending balance(916)— (916)— Retained earnings (accumulated deficit)Beginning balance24,005 (5,161)(5,528)(4,237)Net (loss) income(5,053)(429)64,480 (1,353)Distribution to shareholders— — (40,000)— Ending balance18,952 (5,590)18,952 (5,590)Treasury sharesBeginning balance(51,463)— — — Shares issued to Maiden Reinsurance— — (51,463)— Ending balance(51,463)— (51,463)— Total shareholders' equity$143,774 $4,484 $143,774 $4,484 

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

 6

KESTREL GROUP LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands of U.S. dollars)

For the Nine Months Ended September 30,20252024Cash flows from operating activitiesNet income (loss)$64,480 $(1,353)Less: net loss from discontinued operations1,460 — Adjustments to reconcile net income to net cash flows from operating activities:Other non-cash expenses (