Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 276

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 276
---
 Non-GAAP operating loss$(15,091)$(429)Diluted (loss) per share attributable to common shareholders$(0.65)$(0.16)Add (subtract):Net realized and unrealized investment gains(0.71)— Foreign exchange and other gains(0.37)— Interest in loss of equity method investments— — Net loss from discontinued operations, net of income tax0.13 — Change in fair value of earn out consideration(0.35)— Non-GAAP diluted operating loss per share attributable to common shareholders$(1.95)$(0.16)For the Nine Months Ended September 30,20252024($ in thousands except per share data)Net income (loss) attributable to Kestrel common shareholders$64,480 $(1,353)Add (subtract):Net realized and unrealized investment gains(6,552)— Foreign exchange and other losses2,155 — Interest in loss of equity method investments24 — Bargain purchase gain(73,590)—  Net loss from discontinued operations1,460 — Non-GAAP operating loss$(12,023)$(1,353)Diluted earnings (loss) per share attributable to common shareholders$12.70 $(0.49)Add (subtract):Net realized and unrealized investment gains(1.29)— Foreign exchange and other losses0.44 — Interest in loss of equity method investments0.01 — Bargain purchase gain(14.54)—  Net loss from discontinued operations0.30 — Non-GAAP diluted operating loss per share attributable to common shareholders$(2.38)$(0.49)

 82

Currency and Foreign Exchange 

We conduct business in a variety of foreign (non-U.S.) currencies, exclusively in our Legacy Reinsurance segment, the principal exposures being the euro and the British pound. Assets and liabilities denominated in foreign currencies are exposed to changes in currency exchange rates. Our reporting currency is the U.S. dollar, and exchange rate fluctuations relative to the U.S. dollar may materially impact our results and financial position. Our principal exposure to foreign currency risk is our obligation to settle claims in foreign currencies. In addition, in order to minimize this risk, we maintain and expect to continue to maintain a portion of our investment portfolio in investments denominated in currencies other than the U.S. dollar. We may employ various strategies (including hedging) to manage our