Kestrel Group (KG) investor relations material

Executive summary

• Program Services fee revenue surged 587.9% year-over-year to $3.7 million in Q2 2026, with premium produced rising 479.8% to $109.6 million.

• Net loss for Q2 2026 was $8.1 million, a slight improvement from an adjusted net loss of $8.3 million in Q2 2025, but down from net income of $69.9 million in Q2 2025, which included a $73.6 million bargain purchase gain.

• Legacy Reinsurance segment reported an underwriting loss of $1.3 million in Q2 2026, impacted by adverse prior year loss development and higher amortization.

• Completed the business combination with Maiden Holdings, forming a capital-light, fee-based insurance platform focused on program services and legacy reinsurance run-off.

• Growth in contracted capacity and a robust new account pipeline support continued expansion.

Financial highlights

• H1 2026 revenue increased 400% year-over-year, with Q2 2026 total revenues at $6.7 million.

• Book value per share at June 30, 2026 was $14.57, down from $16.57 at year-end 2025.

• Total investable assets declined to $465.2 million from $515.4 million at year-end 2025.

• Net investment income for Q2 2026 was $2.5 million, offset by $3.0 million in net realized and unrealized investment losses.

• Debt to total capital resources ratio increased to 69.7% at June 30, 2026.

Outlook and guidance

• Underlying trends and expanded capacity are expected to drive further growth in 2026, with management focusing on growing fee-based Program Services and managing run-off liabilities.

• Revenue upside possible if accounts exceed 70% of contracted capacity; new account pipeline offers additional upside.

• No new commitments to alternative investments are planned; existing alternative portfolio expected to decrease.