Company: KG
Filing Date: 2025-08-11
Form Type: 8-K
Source: 0001104659-25-076249
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Company: Kestrel Group Ltd
Filing Date: 2025-08-11
Form: 8-K
Item: Item 4.02
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Item 4.02 - Non-Reliance on Previously Issued Financial Statements
or Related Audit Report or Completed Interim Report.

On August 11, 2025, the Audit Committee of the
Board of Directors of Kestrel Group Ltd (the “ Company”), after consultation with management, Ernst & Young LLP (“ EY”),
the Company’s independent registered public accounting firm, and Frazier & Deeter, LLC (“ FD”), Kestrel Group, LLC’s
former independent registered public accounting firm, concluded that the previously issued consolidated financial statements of Kestrel
Group, LLC (“ Kestrel”) for the fiscal years ended December 31, 2023 and 2024, should no longer be relied upon due to errors
related to the timing of revenue recognition on certain service contracts.

The errors resulted in an understatement of Kestrel’s
revenue in the amount of approximately $2.4 million for the year ended December 31, 2023, and overstatement of revenues of approximately
$1.6 million and $139,000 for the year ended December 31, 2024 and the three months ended March 31, 2025, respectively. These understatements
also impacted net income, earnings per share and shareholders’ equity for the affected periods.

The cumulative effect on the Company’s shareholders’
equity in connection with the consummation on May 27, 2025 of the series of mergers contemplated by the combination agreement, dated December
29, 2024 by and between Maiden Holdings, Ltd., Kestrel the equity holders of Kestrel, Ranger Bermuda Topco Ltd, a Bermuda exempted company
limited by shares, and the parties thereto, was $674,000. The Company believes that such errors are not material with respect to the Company’s
combined consolidated financial statements.

The Company intends to restate Kestrel’s
affected financial statements and is working with FD to file amended consolidated financial statements for the affected periods
through a Form 8-K/A which will also file the pro forma combined consolidated financial statements of the Kestrel Group Ltd. for the year
ended December 31, 2024 and for the three months ended March 31, 2025 as soon as practicable. Management has also concluded that a material
weakness exists in Kestrel’s internal control over financial reporting related to the application of revenue recognition principles.
Remediation efforts are currently underway.

The Audit Committee has discussed