v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
As a result of the Company's recently completed Combination, Kestrel has two reportable segments: Program Services segment and the 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 along with transactions entered into by GLS as described in Note 1. Basis of Presentation under Legacy Reinsurance 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 loss adjustment expenses ("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, certain other 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 supports their decision on how to allocate resources within the Company, primarily with regard to the Company's Program Services segment, which is the Company's active and most strategically important operating segment.
3. Segment Information (continued)
The following tables summarize the results of our reportable segments and the reconciliation of our reportable segments' results to the condensed consolidated net (loss) income for the three months ended June 30, 2026 and 2025, respectively:
For the Three Months Ended June 30, 2026Legacy ReinsuranceProgram ServicesTotal
Gross premiums written
$1,435 $— $1,435 
Net premiums written
$1,436 $— $1,436 
Net premiums earned
$3,474 $— $3,474 
Fee revenue
— 3,742 3,742 
Net loss and LAE(1,515)— (1,515)
Commission and other acquisition expenses
(983)— (983)
General and administrative expenses
(2,322)(1,349)(3,671)
Underwriting loss and fee income
$(1,346)$2,393 $1,047 
Reconciliation to net loss
Net investment income and net realized and unrealized investment losses
(530)
Interest and amortization expenses
(4,177)
Foreign exchange and other gains, net
2,278 
Other general and administrative expenses
(6,822)
Income tax benefit
112 
Interest in income of equity method investments
10 
Net loss
$(8,082)

For the Three Months Ended June 30, 2025
Legacy Reinsurance(1)
Program ServicesTotal
Gross premiums written
$1,096 $— $1,096 
Net premiums written
$1,095 $— $1,095 
Net premiums earned
$2,422 $— $2,422 
Fee revenue
— 544 544 
Net loss and LAE
5,961 — 5,961 
Commission and other acquisition expenses
(394)— (394)
General and administrative expenses
(2,156)(767)(2,923)
Underwriting income and fee loss
$5,833 $(223)$5,610 
Reconciliation to net income
Net investment income and net realized and unrealized investment gains
2,600 
Interest and amortization expenses
(1,519)
Change in fair value of earn out liability(2,679)
Gain on bargain purchase73,590 
Foreign exchange and other losses, net
(5,102)
Other general and administrative expenses
(2,570)
Income tax expense
(3)
Net income
$69,927 

(1) Legacy Reinsurance underwriting results only include the post-combination period from May 27, 2025 to June 30, 2025.
3. Segment Information (continued)
The following tables summarize the results of our reportable segments and the reconciliation of our reportable segments' results to the condensed consolidated net (loss) income for the six months ended June 30, 2026 and 2025, respectively:
For the Six Months Ended June 30, 2026Legacy ReinsuranceProgram ServicesTotal
Gross premiums written
$4,090 $— $4,090 
Net premiums written
$4,090 $— $4,090 
Net premiums earned
$6,631 $— $6,631 
Fee revenue
— 6,862 6,862 
Net loss and LAE
(3,770)— (3,770)
Commission and other acquisition expenses
(2,456)— (2,456)
General and administrative expenses
(5,536)(2,861)(8,397)
Underwriting loss and fee income
$(5,131)$4,001 $(1,130)
Reconciliation to net loss
Net investment income and net realized and unrealized investment losses
3,417 
Interest and amortization expenses
(8,073)
Foreign exchange and other gains, net
4,498 
Other general and administrative expenses
(14,340)
Income tax benefit
106 
Interest in income from equity method investments
9 
Net loss
$(15,513)


For the Six Months Ended June 30, 2025
Legacy Reinsurance(1)
Program ServicesTotal
Gross premiums written
$1,096 $— $1,096 
Net premiums written
$1,095 $— $1,095 
Net premiums earned
$2,422 $— $2,422 
Fee revenue
— 1,351 1,351 
Net loss and LAE
5,961 — 5,961 
Commission and other acquisition expenses
(394)— (394)
General and administrative expenses
(2,156)(1,339)(3,495)
Underwriting income and fee income
$5,833 $12 $5,845 
Reconciliation to net income
Net investment income and net realized and unrealized investment gains
2,634 
Interest and amortization expenses
(1,519)
Change in earn out liability(2,679)
Gain on bargain purchase73,590 
Foreign exchange and other losses, net
(5,102)
Other general and administrative expenses
(3,141)
Income tax expense
(95)
Net income
$69,533 

(1) Legacy Reinsurance underwriting results only include the post-combination period from May 27, 2025 to June 30, 2025.
3. Segment Information (continued)
The following tables summarize the financial position of the Company's reportable segments including a reconciliation to the Company's condensed consolidated total assets at June 30, 2026 and December 31, 2025:
June 30, 2026Legacy ReinsuranceProgram ServicesTotal
Reinsurance balances receivable, net
$5,590 $— $5,590 
Reinsurance recoverable on unpaid losses
412,121 — 412,121 
Net loan receivable from related party69,443 — 69,443 
Intangible assets7,676 — 7,676 
Cash and cash equivalents and investments(1)
147,527 1,955 149,482 
Funds withheld receivable
6,417 — 6,417 
Other assets(2)
1,401 3,922 5,323 
Total assets - reportable segments
650,175 5,877 656,052 
Corporate assets
— — 263,554 
Total Assets
$650,175 $5,877 $919,606 
December 31, 2025Legacy ReinsuranceProgram ServicesTotal
Reinsurance balances receivable, net
$724 $— $724 
Reinsurance recoverable on unpaid losses
461,197 — 461,197 
Loan to related party
86,883 — 86,883 
Intangible assets, net9,347 — 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
— — 271,212 
Total Assets
$733,101 $5,642 $1,009,955 
1.Cash & 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 is entirely comprised of Program fee receivables related to written premiums that are still unpaid at the reporting date. Unpaid amounts are generally paid with 30-60 days after inception of the policy unless the program allows for premiums to be paid on installments. Other assets also includes estimated amounts due from Programs when there is a contractual lag in reporting from the balance sheet date.
3. Segment Information (continued)
The financial information relating to net premiums written by major line of business within the Legacy Reinsurance segment for the three and six months ended June 30, 2026 and 2025 are detailed below:
For the Three Months Ended June 30,20262025
Net premiums written
Total% of Total
Total(1)
% of Total
Diversified Legacy Reinsurance$514 35.8 %$1,380 126.0 %
AmTrust Legacy Reinsurance922 64.2 %(285)(26.0)%
Legacy Reinsurance Segment$1,436 100.0 %$1,095 100.0 %
For the Six Months Ended June 30,20262025
Net premiums writtenTotal% of Total
Total(1)
% of Total
Diversified Legacy Reinsurance$1,289 31.5 %$1,380 126.0 %
AmTrust Legacy Reinsurance2,801 68.5 %(285)(26.0)%
Legacy Reinsurance Segment$4,090 100.0 %$1,095 100.0 %

(1) Legacy Reinsurance underwriting results only include the post-combination period of May 28, 2025 to June 30, 2025.

The financial information for net premiums earned by major line of business within the Legacy Reinsurance segment for the three and six months ended June 30, 2026 and 2025 are detailed below:
For the Three Months Ended June 30,20262025
Net premiums earned
Total% of Total
Total(1)
% of Total
Diversified Legacy Reinsurance$571 16.4 %$1,390 57.4 %
AmTrust Legacy Reinsurance2,903 83.6 %1,032 42.6 %
Legacy Reinsurance Segment$3,474 100.0 %$2,422 100.0 %
For the Six Months Ended June 30,20262025
Net premiums earnedTotal% of Total
Total(1)
% of Total
Diversified Legacy Reinsurance$1,438 21.7 %$1,390 57.4 %
AmTrust Legacy Reinsurance5,193 78.3 %1,032 42.6 %
Legacy Reinsurance Segment$6,631 100.0 %$2,422 100.0 %

(1) Legacy Reinsurance underwriting results only include the post-combination period of May 28, 2025 to June 30, 2025.