Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 239

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 239
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 of the Combination on May 27, 2025 as discussed in Note 15. Business Combination included in Part 1. Item 1. Financial Information. 

Excluding the gain on bargain purchase, net loss was $9.1 million for the nine months ended September 30, 2025 compared to a net loss of $1.4 million for the same period in 2024. An underwriting loss from the Legacy Reinsurance segment as well as higher operating and interest expenses and foreign exchange losses was partially offset by Program Services fee income, and investment income and gains from investment activities. 

The change in our financial results for the nine months ended September 30, 2025 compared to 2024 consisted of:

•underwriting and fee loss of $1.8 million in the nine months ended September 30, 2025 compared to fee income of $0.5 million for the same respective period in 2024 largely due to:

•Our Legacy Reinsurance segment experienced favorable PPD of $1.2 million for the nine months ended September 30, 2025 detailed as follows:

•Our AmTrust Reinsurance Legacy business experienced favorable PPD of $1.0 million for the nine months ended September 30, 2025.

•Our Diversified Reinsurance Legacy business experienced favorable PPD of $0.2 million for the nine months ended September 30, 2025.

•On a current accident year basis, the underwriting loss for the Legacy Reinsurance segment was $3.9 million for the nine months ended September 30, 2025. 

•Program Services segment produced fee income of $1.0 million for the nine months ended September 30, 2025 compared to fee income of $0.5 million for the same period in 2024.  Fee revenue increased to $3.0 million for the nine months ended September 30, 2025 compared to $2.5 million for the same period in 2024 derived from fees from both new and existing client programs. Increased premium volume accounted for $0.5 million of fee revenue for the nine months ended September 30, 2025.  

•combined income from investment activities of $11.6 million for the nine months ended September 30, 2025 compared to $0.2 million in 2024 primarily due to the following:

•net investment income increased to $5.1 million for the nine months ended September 30,