Company: KG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0002055116-25-000018
Chunk: 95

Company: Kestrel Group Ltd
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 95
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5 was $69.9 million compared to net loss of $0.9 million in 2024. Net income for the six months ended June 30, 2025 was substantially the result of the gain on bargain purchase of $73.6 million which was related to the completion of the Combination on May 27, 2025. 

Excluding the gain on bargain purchase, net loss was $4.1 million for the six months ended June 30, 2025 compared to a net loss of $0.9 million for the same period in 2024. Increases in underwriting and fee income as well as investment income were more than offset by higher operating and interest expense along with foreign exchange losses. The change in our financial results for the six months ended June 30, 2025 compared to 2024 was primarily due to:

•underwriting and fee income of $6.3 million in the year ended June 30, 2025 compared to an underwriting and fee income of $0.4 million in 2024 largely due to:

•favorable PPD of $7.8 million in our Legacy Reinsurance segment for the six months ended June 30, 2025. AmTrust Reinsurance Legacy business had favorable PPD of $7.9 million in 2025; Diversified Reinsurance Legacy business had adverse PPD of $0.1 million in 2025. 

•on a current accident year basis, the underwriting loss for the Legacy Reinsurance segment was $1.5 million for the six months ended June 30, 2025. 

•Program Services segment results decreased by $0.3 million, primarily due to reduced capacity permitted on certain programs and specific lines of business. This was due to lower fee revenue of $1.4 million for the six months ended June 30, 2025 compared to $1.8 million for the same period in 2024. Fee revenue decreased by $0.4 million.   

•combined income from investment activities of $2.6 million for the six months ended June 30, 2025 compared to $0.1 million in 2024 primarily due to the following:

•net investment income increased to $1.6 million for the six months ended June 30, 2025 compared to $0.1 million that was earned in 2024; and

•realized and unrealized investment gains of $1.1 million for