Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 3

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 3
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ANGES IN SHAREHOLDERS' EQUITY (Unaudited)

(in thousands of U.S. dollars)

For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Common sharesBeginning balance$27 $27 $27 $27 Shares issued on Combination Agreement72 — 72 — Ending balance99 27 99 27 Additional paid-in capitalBeginning balance10,122 10,047 10,107 10,047 Share-based compensation expense224 — 239 — Shares issued as consideration for Combination 166,539 — 166,539 — Ending balance176,885 10,047 176,885 10,047 Accumulated other comprehensive incomeBeginning balance— — — — Change in net unrealized investment gains485 — 485 — Foreign currency translation adjustment74 — 74 — Ending balance559 — 559 — Retained earnings (accumulated deficit)Beginning balance(5,922)(4,614)(5,528)(4,237)Net income (loss)69,927 (547)69,533 (924)Distribution to shareholders(40,000)— (40,000)— Ending balance24,005 (5,161)24,005 (5,161)Treasury sharesBeginning balance— — — — Shares issued to Maiden Reinsurance(51,463)— (51,463)— Ending balance(51,463)— (51,463)— Total shareholders' equity$150,085 $4,913 $150,085 $4,913 

See accompanying notes to the unaudited Condensed Consolidated Financial Statements.

 6

KESTREL GROUP LTD

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands of U.S. dollars)

For the Six Months Ended June 30,20252024Cash flows from operating activitiesNet income$69,533 $(924)Less: net loss from discontinued operations495 — Adjustments to reconcile net income to net cash flows from operating activities:Other non-cash expenses including depreciation, amortization, share-based compensation and leases2,797 34 Gain on bargain purchase(73,590)— Net realized and unrealized investment gains(1,058)— Change in allowance