Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 122

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 122
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 resume their evaluation of alternative transactions, which could include acquisitions of MGAs and other fronting companies. Mr. Haveron also explained that based on the extensive and ongoing reserve and claims diligence work undertaken by Maiden and its independent third-party actuary to date in connection with the Commutation discussions, any finality solution with respect to the AmTrust reinsurance liabilities could result in significant charges and that, if no finality solution was available, Maiden may incur significant reserve charges.

On November 12, 2024, Maiden issued a press release announcing its third-quarter financial results. In addition to the financial results, the press release also disclosed that Maiden was continuing to pursue strategic paths to build fee-based businesses. The press release also disclosed that Maiden was continuing to pursue finality solutions to resolve the AmTrust reinsurance liabilities, including through third parties. Maiden’s news release also stated that such solutions could involve significant charges to execute and that if a finality solution was not available, Maiden may incur significant additional reserve charges.

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On November 20, 2024, Mr. Haveron spoke with Luke Ledbetter about reengaging in discussions regarding a potential business combination between Maiden and Kestrel. Mr. Ledbetter advised that while he appreciated the call, Kestrel was focused on proposals from alternative capital providers.

At a Maiden board meeting held on November 26, 2024 to discuss Maiden third-quarter financial results, Mr. Haveron provided the Maiden board with an update regarding potential MGA acquisitions that Maiden management was reviewing.

During the week of December 2, 2024, Mr. Haveron engaged in a series of discussions with representatives of AmTrust on potential transaction terms that Kestrel might consider favorable relative to other strategic opportunities Kestrel had available to it, including an alternative transaction structure that did not include the acquisition of the AmTrust Insurance Companies or the Commutation, as well as providing some cash consideration at closing. At the same time, Mr. Haveron also consulted with IAP on revised transaction parameters based on the preliminary financial analysis IAP had previously conducted.

On December 9, 2024, Mr. Haveron met with representatives of Kestrel and AmTrust in person at Kestrel’s offices in Dallas, Texas to discuss a potential transaction on revised terms (the “December 9 Proposal”). The December 9 Proposal, which valued Kestrel at $125 million, proposed that Maiden and K