Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 222

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 222
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 through their respective experience managing the highly successful fronting company, State National Companies, Inc. Kestrel’s management team, led by Terry and Luke Ledbetter, pioneered the fronting industry, and its corporate culture is built upon a foundation of credit underwriting discipline and relentless sales motion. Kestrel’s credit underwriting discipline is evidenced by its strict contractual guidelines and by its selectivity in choosing highly-rated, credit-worthy reinsurance capital. Kestrel further protects its position by structuring clear operating guidelines for its insurance programs and by having tight collateral triggers with its counterparties.

Since its founding, Kestrel has grown significantly, organically sourcing over $140 million of GWP across seven programs actively producing business. We believe Kestrel is well-positioned to benefit from the growing market opportunity in the program insurance industry. Kestrel’s widely licensed admitted and non-admitted paper provides national coverage across a full suite of business lines in both the admitted and excess & surplus markets. Importantly, the AmTrust Insurance Companies have minimal legacy or channel conflicts, and Kestrel has the comprehensive licensing and the industry knowledge to execute fronting arrangements in an organized and straightforward manner.

### Industry Trends Affecting Kestrel’s Results of Operations
The MGA market in the United States has grown dramatically over the past decade. This growth has, in turn, driven many MGAs to seek fronting solutions as an effective way to source cost-efficient capacity while minimizing customer churn. Fronting carrier premiums have grown at a faster rate than the MGA market in recent years, and Kestrel believes that industry growth underpins the potential for its business pipeline in the coming years. Kestrel’s future success depends to a significant extent upon the market’s continued need for carrier capacity to support program growth. These industry dynamics are further impacted by broader economic trends, such as pricing stability in the global property & casualty insurance market, the availability of reinsurance capacity for any given program, and by the willingness and ability of Kestrel to retain risk on program business. Challenging global or regional economic conditions and

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recessionary periods may adversely impact the demand for fronting capacity and for insurance program growth. A reversal or a significant deterioration in industry growth, changes in underlying interest rates or investment returns and/or increasing competition in the fronting space could adversely affect financial performance.

In its role as a provider of capacity, Kestrel often competes against fronting carriers. Front