Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 244

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 244
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Total net realized gains624 1,388 Net unrealized gains:Other investments4,711 4,959 Equity securities159 205 Total net unrealized gains4,870 5,164 Net realized and unrealized investment gains$5,494 $6,552 

Net unrealized gains for the three and nine months ended September 30, 2025 reflect fair value adjustments, primarily from Maiden's legacy alternative investment portfolios.

Net Loss and LAE

 Net loss and LAE incurred for the three and nine months ended September 30, 2025 were $10.4 million and $4.4 million, respectively. Net incurred losses were impacted by net adverse PPD of $6.6 million and net favorable PPD of $1.2 million for the three and nine months ended September 30, 2025, respectively. Excluding the impact of PPD, current year losses were $3.8 million and $5.6 million for the three and nine months ended September 30, 2025, respectively.

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 prior year loss development is discussed in greater detail in the Legacy Reinsurance segment discussion and analysis and is entirely associated with the run-off of unearned premium for terminated reinsurance contracts in the legacy reinsurance operations.

Commission and Other Acquisition Expenses

Commission and other acquisition expenses incurred for the three and nine months ended September 30, 2025 were $1.7 million and $2.1 million, respectively. 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 incurred for the three and nine months ended September 30, 2025 increased by $9.6 million and increased by $13.0 million, respectively, compared to the same respective periods in 2024 primarily due to inclusion of Maiden's general and administrative operating expenses subsequent to May 27, 2025.

 General and administrative expenses for the three and nine months ended September 30, 2025 and 2024 were comprised of:

For the Three Months Ended September 30,For the Nine Months Ended September 30,($ in thousands)2025202420252024General and administrative expenses –