Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 55

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 55
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 development and are modified if necessary. The reserving process begins with the collection and analysis of paid losses and incurred claims data for each of the Company's contracts. While reserves are mostly reviewed on a contract by contract basis, paid loss and incurred claims data is also aggregated into reserving segments. The segmental data is disaggregated by reserving class and further disaggregated by either accident year (i.e. the year in which the loss event occurred) or by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). In cases where the Company uses underwriting year information, reserves are subsequently allocated to the respective accident year. The reserve for loss and LAE consists of: September 30, 2025Reserve for reported loss and LAE$333,514 Reserve for losses incurred but not reported ("IBNR")344,153 Reserve for loss and LAE$677,667 The following table represents a reconciliation of our beginning and ending gross and net loss and LAE reserves: For the Nine Months Ended September 30,2025Gross loss and LAE reserves, January 1$— Less: reinsurance recoverable on unpaid losses, January 1— Net loss and LAE reserves, January 1— Net incurred losses related to:Current year5,613 Prior years(1,168)4,445 Net paid losses related to:Current year(2,894)Prior years(44,241)(47,135)Net Maiden Legacy run-off business acquired221,109 Effect of foreign exchange rate movements6,458 Net loss and LAE reserves, September 30184,877 Reinsurance recoverable on unpaid losses, September 30492,790 Gross loss and LAE reserves, September 30$677,667 Actuarial Methods Used to Estimate Loss and LAE Reserves The Company utilizes a variety of standard actuarial methods in its analysis of loss reserves. The selections from these various methods are based on the loss development characteristics of the specific line of business and significant actuarial judgment. The actuarial methods utilized include:The Expected Loss Ratio ("ELR") method is a technique that is multiplicative and applies an expected loss ratio to premium earned to yield the estimated ultimate losses. The ELR assumption is generally derived from pricing information and historical experience of the business. This method is frequently used for the purpose of stability in the early valuations of an underwriting year with