Kestrel Group Ltd, a recently established specialty insurance platform that provides fronting services to program managers, reinsurers, and reinsurance brokers, has reported total third quarter 2025 revenues of $17.4 million compared to $752 thousand in Q3’24.
For this quarter, the firm’s gross written premiums were $3.76 million, while net premiums written $3.9 million and net premiums earned were $6.8 million.
Overall, there was a net loss was $5.1 million for the quarter.
In Q3’25, the Legacy Reinsurance segment produced an underwriting loss of $9 million, of which $7.6 million related to that segment’s AmTrust business. The AmTrust business reported approximately $6.9 million in adverse prior period loss development (PPP), of which $4.7 million related to AmTrust’s Hospital Liability business, and a reduction of $3.6 million in the amount recoverable under the Loss Portfolio Transfer and Adverse Development Cover Agreement.
These amounts were offset by favourable development in Workers’ Compensation and other lines of business. The segment’s Diversified business produced an underwriting loss of $1.4 million, resulting from favourable PPD of $0.3 million and higher expenses due to the run-off of various programs within that business.
To explain, the firm’s Legacy Reinsurance segment, which consists of the AmTrust Reinsurance and Diversified Reinsurance segments previously reported by Maiden before the Combination with Kestrel.
The AmTrust segment includes all business ceded to Maiden Reinsurance by AmTrust. The Diversified 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, as well as business produced by Maiden LF and Maiden GF, along with transactions entered into by GLS.
Free revenue from the Program Services in Q3’25 was $1.6 million, derived from fees from both new and existing client programs, while increased premium volume accounted for $1.1 million of fee revenue.
Looking at investments, the firm also reported combined income from investment activities totalling $9 million for Q3’25, resulting from net investment income of $3.5 million and realised and unrealised investment gains of $5.5 million, the latter of which was from Maiden’s legacy alternative asset portfolio.
For the quarter, general and administrative expenses were $10.8 million, reflecting elevated levels of one-time costs such as transaction, insurance and legal fees, severance expenses and increased consulting fees.
Through strategic cost management initiatives and the non-recurring nature of certain one-time items totalling $1.9 million in Q3’25, with the expectation that the costs will trend lower in future quarters.
Lastly, Q3’25 reported total assets of $1.1 billion, and shareholders’ equity was $143.8 million.
The company stated, “The combination of values-driven insurance organisations with a commitment to innovation, client service and long-term relationships is intended to generate a balance sheet light, fee revenue model to deliver a strong fee-based insurance platform while selectively deploying underwriting capacity to optimise returns for shareholders. Kestrel’s strategic focus centres on growing the fee income component of its program services business to increase profitability while effectively managing the continuing run-off of the legacy Maiden alternative asset and reinsurance portfolios.”
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