Company: KG
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049606
Chunk: 243

Company: Kestrel Group Ltd
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 243
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's legacy fixed income and alternative investment portfolios in connection with the Combination. 

Annualized average book yields decreased to 3.7% and 3.6% for the three and nine months ended September 30, 2025, compared to 4.4% and 4.5% for the same respective periods in 2024. Net interest income from our loan receivable from related party was $1.6 million and $2.3 million for the three and nine months ended September 30, 2025, respectively. The net loan receivable from related party had an average balance of $104.6 million and carried a weighted average interest rate of 6.1% and 6.2% for the three and nine months ended September 30, 2025, respectively. Floating rate investments comprised 48.2% of our total fixed income investments at September 30, 2025 compared to 0.0% at September 30, 2024.

The following table details our average aggregate fixed income assets (at cost) and annualized investment book yield for the three and nine months ended September 30, 2025 and 2024: 

For the Three Months Ended September 30,For the Nine Months Ended September 30,($ in thousands)2025202420252024Average aggregate fixed income assets, at cost (1)$355,331 $4,744 $178,191 $5,027 Annualized investment book yield3.7 %4.4 %3.6 %4.5 %

(1)Fixed income assets include available-for-sale ("AFS") securities, cash and restricted cash, funds withheld receivable, and net loan receivable from related party. These amounts are an average of the amounts disclosed in our quarterly U.S. GAAP consolidated financial statements.

Net Realized and Unrealized Investment Gains

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Net realized and unrealized investment gains of $5.5 million and gains of $6.6 million were recognized for the three and nine months ended September 30, 2025, respectively. Net realized and unrealized investment gains for the three and nine months ended September 30, 2025 are summarized in the table below by investment category: 

 For the Three Months Ended September 30,For the Nine Months Ended September 30, ($ in thousands)20252025Net realized gains: Fixed maturity securities$624 $1,388