Kestrel Group Ltd's Business Segments

Kestrel Group Ltd ("Kestrel Group" or "Parent Company") was established on May 27, 2025, through the merger of Kestrel Group LLC and Maiden Holdings, Ltd. It is a publicly listed specialty program group operating a capital-light, fee-based insurance platform with selective underwriting capacity deployment. The company aims to optimize shareholder returns by focusing on fee income growth from its Program Services business while managing the run-off of legacy Maiden alternative asset and reinsurance portfolios. As of December 31, 2025, Kestrel Group holds $218.6 million in alternative investments, which it plans to dispose of to increase liquidity and concentrate on Program Services growth. Kestrel Group operates through two reportable segments: Program Services and Legacy Reinsurance. The Program Services segment offers fronting services and issuing carrier capacity to insurance program managers, managing general agencies (MGAs), reinsurers, and brokers. It operates under exclusive management contracts with four A- rated insurance carriers, all subsidiaries of AmTrust Financial Services, Inc., collectively referred to as the AmTrust Insurance Carriers. Kestrel collects capacity distribution fees from program managers or MGAs in exchange for support services and access to its insurance carrier network, which includes compliance, regulatory reporting, and administrative support, culminating in bound insurance coverage. In 2025, two clients accounted for over 93% of Kestrel’s fee revenue. The company retains an option to acquire the AmTrust Insurance Companies within three years following the combination.

The registrant operates two reportable segments: Program Services and Legacy Reinsurance. The Program Services segment provides fronting services and issues carrier capacity to insurance program managers, managing general agencies (MGAs), reinsurers, and reinsurance brokers who manage insurance books supported by third-party reinsurance risk. This segment offers integrated products and services through exclusive management contracts with four A.M. Best A- rated insurance carriers: Sierra Specialty Insurance Company, Rochdale Insurance Company, Park National Insurance Company, and Republic Fire and Casualty Insurance Company, collectively known as the AmTrust Insurance Carriers, all subsidiaries of AmTrust Financial Services, Inc. Kestrel Group retains the option to acquire these AmTrust Insurance Companies for up to three years following the Combination closing. The segment collects capacity distribution fees from program managers or MGAs for support services and access to the insurance carrier network, considered a single performance obligation. Support services include compliance, regulatory reporting, and administrative support leading to bound insurance coverage placement. In 2025, the Program Services segment reported $188,345,000 in premium produced, $6,076,000 in fee revenue, $3,246,000 in general and administrative expenses, and $2,830,000 in fee income. Revenue is concentrated, with two clients accounting for 72.1% and 21.2% of total fee revenue, and the largest sub-program representing no more than 35% of total fee revenue. The segment utilizes AmTrust's A- rating, licenses, and reputation to provide access to the U.S. property and casualty insurance market in exchange for fees.