Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 244

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 244
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 count information is available. Additional data detailing items such as class of business, state, claim counts, frequency and severity is available, further enhancing the reserve analysis. Prior period loss development ("PPD") arises from changes to loss estimates recognized in the current year that relate to loss reserves established in previous calendar years. The favorable or unfavorable PPD reflects changes in management's best estimate of the ultimate losses under the relevant reinsurance policies after considerable review of changes in actuarial assessments. The following table summarizes (favorable) adverse PPD for our Legacy Reinsurance segment for the three and six months ended June 30, 2025:For the Three and Six Months Ended June 30,2025Prior Year Loss Development (favorable) adverseDiversified Reinsurance legacy business$125 AmTrust Reinsurance legacy business(7,913)Total PPD for Legacy Reinsurance Segment$(7,788)Legacy Reinsurance Segment: Diversified BusinessIn the Diversified Reinsurance legacy operations, the adverse PPD was $125 for the three and six months ended June 30, 2025 which was primarily driven by adverse development in GLS business.

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

9. Reserve for Loss and Loss Adjustment Expenses (continued)Legacy Reinsurance Segment: AmTrust BusinessThe table below shows PPD for the AmTrust Reinsurance legacy operations for the three and six months ended June 30, 2025: For the Three and Six Months Ended June 30,2025Prior Year Loss Development (favorable) adverse AmTrust Quota Share$(4,200)LPT/ADC Agreement(3,718)European Hospital Liability Quota Share5 Total AmTrust Reinsurance PPD$(7,913)Net favorable PPD was $7,913 during the three and six months ended June 30, 2025 as detailed in the table above primarily experienced due to foreign currency fluctuations on reserves denominated in non-USD.

 39

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

10. Related Party Transactions 

Kestrel Intermediate Ledbetter Holdings, LLC ("KILH") was the controlling shareholder of Kestrel. In addition, Terry Ledbetter,