Kestrel Group Ltd reported $46.7 million in net income for 2025, though core operations reflected a $13.8 million non-GAAP operating loss following its merger with Maiden Holdings Ltd.
For the year ended December 31, 2025, Kestrel recorded net income of $46.7 million, or $8.08 per diluted share, compared with a net loss of $1.29 million in 2024. Net income from continuing operations reached $49.5 million.
The result included a $68.3 million gain on bargain purchase tied to the combination with Maiden, which closed in May 2025 and formed the current Kestrel Group Ltd, according to company disclosures at the time.
Total revenues for 2025 were $34.0 million, with $12.9 million in net premiums earned and $6.1 million in fee revenue. Net investment income totaled $8.3 million, alongside $7.0 million in realized and unrealized investment gains.
On a non-GAAP basis, operating loss for the year was $13.8 million.
In the fourth quarter, the company reported a net loss of $17.8 million, compared with net income of $62,000 in the same period in 2024. Net loss from continuing operations was $16.4 million, or $2.12 per diluted share.
Total revenues for the quarter were $10.2 million, including $3.4 million in net premiums earned, $3.1 million in fee revenue, and $3.3 million in net investment income.
The quarterly result included a $5.3 million adjustment to reduce the bargain purchase gain based on revised information affecting asset values from the Maiden transaction. Other items included $2.0 million in legal and professional fees related to arbitration and $0.8 million in restructuring and severance costs.
Additional charges included $0.5 million tied to the commutation of a reinsurance contract and $0.2 million in legal expenses.
Non-GAAP operating loss for the quarter was $8.2 million, with an annualized return on average adjusted common equity of -23.9%.
Program Services reported net fee income of $1.9 million in the fourth quarter, up 94.5% from the third quarter of 2025. Premium produced by Program Services clients totaled $93.8 million, up 79.2% over the prior quarter.
For the full year, the segment generated $6.1 million in fee revenue and underwriting income of $2.8 million. In the fourth quarter, Program Services recorded underwriting income of $1.9 million.
Legacy reinsurance operations reported net premiums earned of $12.7 million for 2025, alongside underwriting loss and fee income of $-10.3 million.
In the fourth quarter, the segment recorded an underwriting loss of $7.6 million.
Kestrel reported total investable assets of $496.6 million and total capital resources of $390.6 million, including $110.0 million in 2016 senior notes and $152.4 million in 2013 senior notes.
The May 2025 transaction combined Kestrel’s fronting platform with Maiden’s balance sheet resources, creating a specialty insurance programs provider. Prior company statements described the structure as focused on fee-based program business supported by third-party underwriting capacity.
The merger followed shareholder approval and resulted in the formation of a Bermuda-based holding company, with shares trading under the ticker “KG,” according to earlier company disclosures.
“The fourth quarter saw positive progress in our Program Services segment. Since completing the merger with Maiden in May of 2025, and after working through a complicated integration, which remains ongoing, we have gained momentum in our Program Services segment while simultaneously managing the legacy Maiden business. This quarter we took a meaningful step forward. I'm encouraged by the progress we've made, and I'm thankful for the hard work and dedication of our team,” said chief executive officer Luke Ledbetter.
"As we progress through 2026, we continue to work with our valued capacity providers to match our market opportunities with their allocated underwriting capacity and are diligently exploring opportunities to expand our ability to write attractive fee-based business in a highly competitive marketplace. We remain committed to developing the strategic framework to facilitate future growth that will drive value for Kestrel shareholders. Our goal is innovation, client service and long-term relationships as we strive to generate a balance sheet light, fee revenue model while selectively deploying underwriting capacity to optimize returns for shareholders,” Ledbetter added.
