Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 99

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 99
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 and unrealized investment gains for the three and six months ended June 30, 2025 are summarized in the table below by investment category: 

For the Three and Six Months Ended June 30,2025Net realized gains (losses):Fixed maturity securities$764 Total net realized losses764 Net unrealized gains (losses):Other investments248 Equity securities46 Total net unrealized gains294 Net realized and unrealized investment gains$1,058 

Net Loss and LAE

 Net loss and LAE was $6.0 million for the three and six months ended June 30, 2025. Net losses were impacted by net favorable PPD of $7.8 million for the three and six months ended June 30, 2025. Excluding PPD, current year losses were $1.8 million for the three and six months ended June 30, 2025.

The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019. The net loss development is discussed in greater detail in the Legacy Reinsurance segment discussion and analysis and entirely associated with run-off of unearned premium for terminated reinsurance contracts in the legacy reinsurance operations.

Commission and Other Acquisition Expenses

Commission and other acquisition expenses were $0.4 million for the three and six months ended June 30, 2025. Please see the Legacy Reinsurance segment analysis below for further information.

General and Administrative Expenses

General and administrative expenses include both segment and corporate expenses segregated for analytical purposes as a component of underwriting income. Total general and administrative expenses increased by $3.9 million and $3.4 million for the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily due to the inclusion of Maiden's general and administrative expenses as a result of the Combination subsequent to May 27, 2025.

Corporate expenses increased primarily due to $1.7 million in non-recurring employee separation costs. Excluding these non-recurring expenses, our adjusted operating expenses increased by $2.2 million and increased by $1.7 million for the three and six months ended June 30, 2025, compared to the same periods in 2024. Corporate expenses also included vesting of certain stock-based awards which were $0.2 million for the six months ended June 30, 2025 compared