Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 233

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 233
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 specific information that may impact future cash flows in order to assess the reasonableness of inputs used in the valuation model. Due to significant unobservable inputs in these valuations, the Company classifies the fair values as Level 3 within the fair value hierarchy.The following table provides a summary of quantitative information regarding the significant unobservable inputs used in determining the fair value of other investments measured at fair value on a recurring basis under the Level 3 classification at June 30, 2025: Fair ValueValuation TechniqueUnobservable InputsRangePrivately held equity investments - common shares$5,181 Quarterly financial statementsPrice/book ratios of comparable public companies   Privately held equity investments - preferred shares10,741 Quarterly financial statementsPrivately calculated enterprise valuationsOther investments - Investments in direct lending entities49,978 Quarterly financial statementsPrivately calculated enterprise valuationsEquity method investments measured at fair value option73,019 Quarterly financial statementsPrivately calculated enterprise valuationsTotal Level 3 investments$138,919  Underwriting-related derivative liability$3,984 Discounted cash flowsDuration matched discount rates5.0%to6.0%The following table shows the reconciliation of beginning and ending balances for investments measured at fair value on a recurring basis using Level 3 inputs for the three and six months ended June 30, 2025, respectively. The Company includes any related interest and dividend income in net investment income and are excluded from the reconciliation in the table below:For the Three and Six Months Ended June 30,2025Balance - beginning of period$— Acquired Level 3 investments137,188 Purchases1,723 Sales(163)Net realized and unrealized gains during the period171 Total Level 3 investments - end of period$138,919 (d) Financial Instruments Disclosed, But Not Carried, at Fair ValueThe fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments related to insurance contracts. At June 30, 2025, the carrying values of cash equivalents (including restricted amounts), accrued investment income, reinsurance balances receivable and certain other assets and liabilities approximate fair values due to their inherent short duration. As these financial instruments are not actively traded, the fair values of these financial instruments are classified as Level 2 in the fair value hierarchy.At June 30, 2025, the carrying value of the net loan receivable from related