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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
As a result of the 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 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, as well as business produced by Maiden LF and Maiden GF along with transactions entered into by GLS as described in Note 1. Basis of Presentation under Maiden Legacy 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 other insurance revenue less net loss and 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 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, Luke Ledbetter 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.
3. Segment Information (continued)
The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income for the three months ended June 30, 2025 and 2024, respectively:
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 LAE5,961 — 5,961 
Commission and other acquisition expenses
(394)— (394)
General and administrative expenses
(1,706)(768)(2,474)
Underwriting and fee income (loss)
$6,283 $(224)6,059 
Reconciliation to net income from continuing operations
Net investment income and net realized and unrealized investment gains
2,589 
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
(5,009)
Other general and administrative expenses
(2,606)
Income tax expense
(3)
Net income from continuing operations
$70,422 
(1) Legacy Reinsurance underwriting results only include the post-combination period of May 28, 2025 to June 30, 2025.
For the Three Months Ended June 30, 2024Legacy ReinsuranceProgram ServicesTotal
Fee revenue
$— $577 $577 
General and administrative expenses
— (589)(589)
Fee loss
$— $(12)$(12)
Reconciliation to net loss from continuing operations
Net investment income 54 
Other general and administrative expenses
(589)
Net loss from continuing operations
$(547)
3. Segment Information (continued)
The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments' underwriting results to consolidated net income for the six months ended June 30, 2025 and 2024, respectively:
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
(1,706)(1,339)(3,045)
Underwriting and fee income
$6,283 $12 6,295 
Reconciliation to net income
Net investment income and net realized and unrealized investment gains
2,623 
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
(5,009)
Other general and administrative expenses
(3,178)
Income tax expense
(95)
Net income from continuing operations
$70,028 
(1) Legacy Reinsurance underwriting results only include the post-combination period of May 28, 2025 to June 30, 2025.

For the Six Months Ended June 30, 2024Legacy ReinsuranceProgram ServicesTotal
Fee revenue
$— $1,757 $1,757 
General and administrative expenses
— (1,400)(1,400)
Fee income
$— $357 $357 
Reconciliation to net loss
Net investment income 118 
Other general and administrative expenses
(1,399)
Net loss from continuing operations
$(924)
3. Segment Information (continued)
The following tables summarize the financial position of the Company's reportable segments including a reconciliation to the Company's consolidated total assets at June 30, 2025 and December 31, 2024:
June 30, 2025Legacy ReinsuranceProgram ServicesTotal
Reinsurance balances receivable, net
$10,397 $— $10,397 
Reinsurance recoverable on unpaid losses
520,520 — 520,520 
Deferred commission and other acquisition expenses
— — — 
Loan to related party
107,490 — 107,490 
Intangible assets11,438 — 11,438 
Restricted cash and cash equivalents and investments
211,378 2,530 213,908 
Funds withheld receivable
12,085 — 12,085 
Other assets(1)
383 1,323 1,706 
Total assets - reportable segments
873,691 3,853 877,544 
Corporate assets
— — 262,044 
Assets held for sale
— — 19,823 
Total Assets
$873,691 $3,853 $1,159,411 
December 31, 2024Legacy ReinsuranceProgram ServicesTotal
Restricted cash and cash equivalents and investments
$— $4,286 $4,286 
Other assets(1)
— 968 968 
Total assets - reportable segments
— 5,254 5,254 
Corporate assets
— — 256 
Total Assets
$— $5,254 $5,510 
(1) 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 amount 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 fees due from Programs for contractual arrangements with minimum annual fees. Kestrel amortizes the minimum fee over the contract period.
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, 2025 are detailed below:
For the Three and Six Months Ended June 30,2025
Net premiums written
Total
Diversified Legacy Reinsurance$1,380 
AmTrust Legacy Reinsurance(285)
Legacy Reinsurance Segment(1)
$1,095 
(1) Legacy Reinsurance segment 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, 2025 are detailed below:
For the Three and Six Months Ended June 30,2025
Net premiums earned
Total
Diversified Legacy Reinsurance$1,390 
AmTrust Legacy Reinsurance1,032 
Legacy Reinsurance Segment(1)
$2,422 
(1) Legacy Reinsurance segment results only include the post-combination period of May 28, 2025 to June 30, 2025.