Kestrel Group LtdKG
Kestrel Group Ltd Segments Disclosure
Segment Information
As a result of the Company's recently completed Combination, Kestrel has two reportable segments: Program Services segment and Legacy Reinsurance segment. Our Program Services reportable segment consists of a cohesive suite of fronting services that are integrated and interdependent. This revenue stream is highly concentrated due to capacity distribution agreements with an individual customer. Capacity distribution fees are collected from program managers or MGAs for providing support services and granting contractual access to our insurance carrier network and are considered a single performance obligation. Support services provided for these insurance and reinsurance brokerage arrangements include compliance and regulatory reporting and administrative support which culminate in the placement of bound insurance coverage. Kestrel considers these arrangements a single revenue stream.
Our Legacy Reinsurance reportable segment consists of the AmTrust Reinsurance and Diversified Reinsurance segments previously reported by Maiden prior to the Combination with Kestrel. The AmTrust portion of this reportable segment includes all business ceded to Maiden Reinsurance by AmTrust, primarily the quota share reinsurance agreement (“AmTrust Quota Share”) between Maiden Reinsurance and AmTrust’s wholly owned subsidiary, AmTrust International Insurance, Ltd. (“AII”) and the European hospital liability quota share reinsurance contract ("European Hospital Liability Quota Share") with AmTrust’s wholly owned subsidiaries, AmTrust Europe Limited ("AEL") and AmTrust International Underwriters DAC ("AIU DAC"), which are both in run-off effective January 1, 2019. Please refer to "Note 10. Related Party Transactions" for additional information regarding these agreements. The Diversified Reinsurance portion of this reportable segment consists of a run-off portfolio of predominantly third-party property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe, including business produced by Maiden LF and Maiden GF and transactions entered into by GLS as described in Note 1. Organization under Maiden Legacy Operations.
The Company evaluates segment performance based on segment profit separately from results of our investment portfolio. Underwriting and fee income or loss is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses. General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied; however, general corporate expenses are not allocated to the reportable segments. In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, funds withheld receivable, net loan receivable from related party, intangible assets and restricted cash and investments. All remaining assets are allocated to Corporate.
Kestrel’s chief operating decision maker ("CODM") is the Company's Chief Executive Officer, for both the Program Services segment and the Legacy Reinsurance segment. The significant segment expenses as reported in the computation of underwriting results in the tables below are used by the Company's CODM in assessing segment performance on a quarterly basis and support their decision on how to allocate resources within the Company.
3. Segment Information (continued)
The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income from continuing operations for the years ended December 31, 2025 and 2024, respectively:
| For the Year Ended December 31, 2025 | Legacy Reinsurance(1) | Program Services | Total | |||||||||||||||||
Gross premiums written | $ | 6,091 | $ | — | $ | 6,091 | ||||||||||||||
Net premiums written | $ | 6,209 | $ | — | $ | 6,209 | ||||||||||||||
Net premiums earned | $ | 12,673 | $ | — | $ | 12,673 | ||||||||||||||
Fee revenue | — | 6,076 | 6,076 | |||||||||||||||||
Net loss and LAE | (8,992) | — | (8,992) | |||||||||||||||||
Commission and other acquisition expenses | (3,131) | — | (3,131) | |||||||||||||||||
General and administrative expenses | (10,861) | (3,246) | (14,107) | |||||||||||||||||
Underwriting loss and fee income | $ | (10,311) | $ | 2,830 | (7,481) | |||||||||||||||
Reconciliation to net income | ||||||||||||||||||||
Net investment income and net realized and unrealized investment gains | 15,300 | |||||||||||||||||||
Interest and amortization expenses | (9,865) | |||||||||||||||||||
| Gain on bargain purchase | 68,306 | |||||||||||||||||||
Foreign exchange and other losses, net | (1,723) | |||||||||||||||||||
Other general and administrative expenses | (14,955) | |||||||||||||||||||
Income tax expense | (68) | |||||||||||||||||||
Interest in income from equity method investments | 24 | |||||||||||||||||||
Net income from continuing operations | $ | 49,538 | ||||||||||||||||||
(1) Legacy Reinsurance underwriting results only include the post-combination period from May 27, 2025 to December 31, 2025.
| For the Year Ended December 31, 2024 | Legacy Reinsurance | Program Services | Total | |||||||||||||||||
Fee revenue | $ | — | $ | 3,634 | $ | 3,634 | ||||||||||||||
General and administrative expenses | — | (2,554) | (2,554) | |||||||||||||||||
Fee income | $ | — | $ | 1,080 | 1,080 | |||||||||||||||
Reconciliation to net loss from continuing operations | ||||||||||||||||||||
| Net investment income | 213 | |||||||||||||||||||
Other general and administrative expenses | (2,554) | |||||||||||||||||||
Income tax expense | (30) | |||||||||||||||||||
Net loss from continuing operations | $ | (1,291) | ||||||||||||||||||
3. Segment Information (continued)
The following tables summarize the financial position of our reportable segments including the reconciliation to the Company's consolidated total assets at December 31, 2025 and 2024:
| December 31, 2025 | Legacy Reinsurance | Program Services | Total | |||||||||||||||||
Reinsurance balances receivable, net | $ | 724 | $ | — | $ | 724 | ||||||||||||||
Reinsurance recoverable on unpaid losses | 461,197 | — | 461,197 | |||||||||||||||||
| Net loan receivable from related party | 86,883 | — | 86,883 | |||||||||||||||||
| Intangible assets | 9,347 | — | 9,347 | |||||||||||||||||
Cash and cash equivalents and investments(1) | 163,767 | 3,165 | 166,932 | |||||||||||||||||
Funds withheld receivable | 10,956 | — | 10,956 | |||||||||||||||||
Other assets(2) | 227 | 2,477 | 2,704 | |||||||||||||||||
Total assets - reportable segments | 733,101 | 5,642 | 738,743 | |||||||||||||||||
Corporate assets | — | — | 251,717 | |||||||||||||||||
Assets held for sale | — | — | 19,495 | |||||||||||||||||
Total Assets | $ | 733,101 | $ | 5,642 | $ | 1,009,955 | ||||||||||||||
| December 31, 2024 | Legacy Reinsurance | Program Services | Total | |||||||||||||||||
Cash and cash equivalents and investments(1) | $ | — | $ | 4,286 | $ | 4,286 | ||||||||||||||
Other assets(2) | — | 968 | 968 | |||||||||||||||||
Total assets - reportable segments | — | 5,254 | 5,254 | |||||||||||||||||
Corporate assets | — | — | 256 | |||||||||||||||||
Total Assets | $ | — | $ | 5,254 | $ | 5,510 | ||||||||||||||
1.Cash and investments for the Legacy Reinsurance segment are restricted as discussed in Note 4(e). The Company is required to provide collateral for its reinsurance liabilities under various legacy reinsurance agreements and utilizes trust accounts to collateralize business with reinsurance counterparties. The assets in trust as collateral are primarily cash and highly rated fixed maturities.
2.Other assets for the Program Services segment are entirely comprised of Program fee receivables related to written premiums that are still unpaid at the reporting date. Unpaid amounts are generally paid 30-60 days after inception of the policy unless the program allows for premiums to be paid on installments. Other assets also include fees due from Programs for contractual arrangements with minimum annual fees.
The following table shows an analysis of gross and net premiums written and net premiums earned by geographic location for the year ended December 31, 2025. In the case of reinsurance business assumed from AmTrust, the table refers to the location of the relevant AmTrust subsidiaries.
| For the Year Ended December 31, | 2025 | |||||||
Gross premiums written – North America | $ | (195) | ||||||
Gross premiums written – Other (predominantly Europe) | 6,286 | |||||||
Gross premiums written – Total(1) | $ | 6,091 | ||||||
Net premiums written – North America | $ | (80) | ||||||
Net premiums written – Other (predominantly Europe) | 6,289 | |||||||
Net premiums written – Total(1) | $ | 6,209 | ||||||
Net premiums earned – North America | $ | (80) | ||||||
Net premiums earned – Other (predominantly Europe) | 12,753 | |||||||
Net premiums earned – Total(1) | $ | 12,673 | ||||||
(1) Legacy Reinsurance segment results only include the post-combination period from May 27, 2025 to December 31, 2025.
3. Segment Information (continued)
The following table sets forth financial information relating to net premiums written by major line of business and reportable segment for the year ended December 31, 2025:
| For the Year Ended December 31, | 2025 | |||||||||||||
| Total | % of Total | |||||||||||||
| Legacy Segment - Diversified Reinsurance | $ | 7,444 | 119.9 | % | ||||||||||
| Legacy Segment - AmTrust Reinsurance | (1,235) | (19.9) | % | |||||||||||
Total Net Premiums Written(1) | $ | 6,209 | 100.0 | % | ||||||||||
(1) Legacy Reinsurance segment results only include the post-combination period from May 27, 2025 to December 31, 2025.
The following table sets forth financial information relating to net premiums earned by major line of business and reportable segment for the year ended December 31, 2025:
| For the Year Ended December 31, | 2025 | |||||||||||||
| Total | % of Total | |||||||||||||
| Legacy Segment - Diversified Reinsurance | $ | 7,765 | 61.3 | % | ||||||||||
| Legacy Segment - AmTrust Reinsurance | 4,908 | 38.7 | % | |||||||||||
Total Net Premiums Earned(1) | $ | 12,673 | 100.0 | % | ||||||||||
(1) Legacy Reinsurance segment results only include the post-combination period from May 27, 2025 to December 31, 2025.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.