Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 432

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 2
Chunk 432
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If Kestrel Group is unable to establish and maintain accurate loss reserves, its business, financial condition, results of operations and prospects may be materially and adversely affected.

There is inherent uncertainty in the process of establishing insurance loss reserves. As a result of these uncertainties, the ultimate paid loss and LAE may deviate, perhaps substantially, from the point-in-time estimates of such losses and expenses, as reflected in the loss reserves included in Kestrel Group’s financial statements. To the extent that loss and LAE exceed estimates, Kestrel Group will be required to immediately recognize any retained unfavorable development and increase loss reserves, with a corresponding reduction in its net income in the period in which the reserve levels are increased. Consequently, ultimate losses paid could materially exceed reported loss reserves and have a material and adverse effect on Kestrel Group’s business, financial condition, results of operations and prospects.

Kestrel Group’s business will depend on the efforts of its executive officers and other personnel. If Kestrel Group is unsuccessful in its efforts to attract, train and retain qualified personnel, its business, financial condition, results of operations and prospects may be materially adversely affected.

Kestrel Group’s success will depend on its executive officers’ industry expertise, knowledge of its markets and relationships with clients. The executive officers of Kestrel Group will be:

• Luke Ledbetter (Chief Executive Officer);

• Terry Ledbetter (Executive Chairman); and

• Patrick Haveron (President and Chief Financial Officer).

Kestrel Group has agreements with its executive officers that contain certain non-compete and non-solicit provisions. Nonetheless, should any of its executive officers cease working for Kestrel Group, it may not be able to find acceptable replacements with comparable skills and experience in the niche markets that Kestrel Group targets. In addition, its business is also dependent on other skilled employees. Kestrel Group cannot guarantee its ability to attract, train and retain, on a timely basis and on anticipated economic and other terms, experienced and capable senior management, underwriters and support staff. Kestrel Group will pay competitive salaries, bonuses and equity-based rewards in order to attract and retain such personnel, but there can be no assurance that Kestrel Group will be successful in such endeavors. Loss of key personnel or inability to recruit and retain qualified personnel in the future could have a material and adverse effect on Kestrel Group’s business, financial condition or results of operations.

Kestrel Group may require additional capital in the future which may not be available or available