Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 76

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 76
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 company’s portfolio may reduce the combined company’s net asset value by increasing unrealized depreciation in the combined company’s portfolio. Depending on market conditions, the combined company could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on the combined company’s business, financial condition, results of operations and prospects.

In addition, alternative or “other” investments may not meet regulatory admissibility requirements or may result in increased regulatory capital charges to Maiden’s insurance subsidiaries that hold these investments, which could limit those subsidiaries’ ability to make capital distributions to the combined company, which in turn could adversely affect the combined company’s business, financial condition, results of operations and prospects.

Performance of the combined company’s investment portfolio will be subject to a variety of investment risks.

The combined company’s operating results will be affected, in part, by the performance of its investment portfolio. Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond the combined company’s control. Although the combined company will take measures to manage investment risks, it may not be able to fully or effectively mitigate interest rate sensitivity. Despite any mitigation efforts, a significant change in interest rates could have a material and adverse effect on the combined company’s business, financial condition, results of operations and prospects.

In addition, the performance of the combined company’s investment portfolio will generally be subject to other risks, including the following:

•

deterioration in the financial condition, operating performance or business prospects of one or more issuers of its fixed-income securities;

•

heavy concentration of the investment portfolio in the securities of a few issuers, sectors or industries;

•

inability to convert investment securities into cash on favorable terms and on a timely basis; and

•

general movements in the securities markets.

A substantial decline in its investment portfolio could have a material and adverse effect on the combined company’s business, financial condition, results of operations and prospects.

Technology breaches or failures, including, but not limited to, those resulting from cyber-attacks on the combined company or its business partners and service providers, could disrupt or otherwise negatively impact the combined company’s business.

The combined company’s information technology systems are vulnerable to data breaches, interruptions or failures due to events that may be beyond its control, including, but not limited to, natural disasters, theft, terrorist attacks, computer viruses, hackers and general technology failures. The combined company’s information technology systems will include the Internet and third-party hosted services. The