What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 617 added, 423 removed, 693 unchanged (60% of the section changed)

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Certain reclassifications have been made for 2025 to conform to the 2026 presentation and have no impact on consolidated net income and total equity previously reported.

As a result of the Combination on May 27, 2025, the Company acquired Maiden's legacy operations, which includes significant underwriting and investment activities, along with operating expenses and interest expense associated with Maiden's senior notes outstanding.

Maiden's results for the three and six months ended June 30, 2025 only include operations subsequent to May 27, 2025 therefore the year-over-year comparisons are generally not directly comparable.

Note on Forward-Looking Statements

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(“Maiden”) completed their previously announced combination ("Combination"), forming a new, publicly listed specialty program group operating under the name Kestrel Group Ltd (“Kestrel Group” or "Parent Company").

Maiden shares ceased trading on the NASDAQ Capital Market ("Nasdaq") at close of market on May 27, 2025.

Kestrel Group shares began trading on the Nasdaq at open of market on May 28, 2025 under the ticker symbol “KG”.

Maiden shares ceased trading on the NASDAQ Capital Market ("Nasdaq") at the close of market on May 27, 2025 and Kestrel Group shares began trading on the Nasdaq at open of market on May 28, 2025 under the ticker symbol “KG”.

Upon the closing of the Transactions (the “Closing”), Maiden and Kestrel LLC are now wholly owned subsidiaries of the Company, which was rebranded as Kestrel Group and renamed “Kestrel Group Ltd” ("Kestrel" or the "Company").

The Combination creates a capital light, fee-based insurance platform with the ability to selectively deploy underwriting capacity to optimize shareholder returns, with a commitment to innovation, client service and long-term relationships.

The Combination created a capital-light, fee-based insurance platform with the ability to selectively deploy underwriting capacity to optimize shareholder returns, supported by a commitment to innovation, client service and long-term relationships.

Kestrel specializes in providing fronting services to insurance program managers, managing general agencies (MGAs), reinsurers, and reinsurance brokers.

Kestrel facilitates insurance transactions utilizing its exclusive management contracts with four insurance carriers, all of which are rated A- “Excellent” by A.M.

Kestrel facilitates insurance transactions through its exclusive management contracts with four insurance carriers, all of which are rated A- “Excellent” by A.M.

These contracts enable Kestrel to offer both admitted and surplus lines in all U.S.

Kestrel LLC generally does not assume significant underwriting risk and produces lines of business such as casualty, workers’ compensation, catastrophe-exposed property, and non-catastrophe-exposed property, with diverse risk durations, sizes, and product types.

Kestrel continues to write business through its exclusive use of A.M.

Kestrel continues to write business through its exclusive use of four A.M.

Best A- FSC XV insurance carriers Sierra Specialty Insurance Company, Rochdale Insurance Company, Park National Insurance Company and Republic Fire and Casualty Insurance Company (collectively, “AmTrust Insurance Companies”), all subsidiaries of AmTrust Financial Services, Inc.

Kestrel currently retains an option to acquire the AmTrust Insurance Companies for a period of up to three years after closing from AmTrust.

Kestrel currently retains an option to acquire the AmTrust Insurance Companies for a period of up to three years following the Closing.

AmTrust is a significant shareholder of Kestrel.

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Related Party Transactions for further information regarding the Company's relationship with AmTrust.

As of March 31, 2026, Maiden Reinsurance Ltd.

("Maiden Reinsurance") owns 22.1% of the Company's total issued and outstanding common shares which is eliminated for accounting and financial reporting purposes on the Company's condensed consolidated financial statements.

On April 29, 2025, former Maiden shareholders approved the proposal to remove the 9.5% voting limitation at the Company's special general meeting of its shareholders (the "Special Meeting").

The ownership of common shares by Maiden Reinsurance was made in compliance with Maiden Reinsurance's investment policy and approved by the Vermont Department of Financial Regulation ("Vermont DFR").

As of June 30, 2026, Maiden Reinsurance Ltd.

("Maiden Reinsurance") owned 22.2% of the Company's total issued and outstanding common shares, which is eliminated for accounting and financial reporting purposes in the Company's condensed consolidated financial statements.

On April 29, 2025, former Maiden shareholders approved a proposal removing the 9.5% voting limitation at the Company's special general meeting of shareholders (the "Special Meeting").

Maiden Reinsurance's ownership of common shares was made in compliance with its investment policy and was approved by the Vermont Department of Financial Regulation ("Vermont DFR").

Current Operations

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Our Program Services segment consists of a cohesive suite of products and services offered by Kestrel that are integrated and interdependent.

Kestrel’s revenue is highly concentrated because of the capacity distribution agreements with an individual customer.

Kestrel’s revenue is highly concentrated because of a capacity distribution agreement with an individual single 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.

Support services under 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 .

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AmTrust Reinsurance and Diversified Reinsurance.

Business formerly classified in the AmTrust Reinsurance segment is now described as "AmTrust Reinsurance Legacy Business" while business formerly classified in the Diversified Reinsurance segment is referred to as "Diversified Reinsurance Legacy Business" within this new segment.

Business formerly classified in the AmTrust Reinsurance segment is now described as "AmTrust Reinsurance Legacy Business" and business formerly classified in the Diversified Reinsurance segment is referred to as "Diversified Reinsurance Legacy Business" within this new segment.

AmTrust Reinsurance Legacy Business 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, AEL and AIU DAC, both of which are in run-off effective as of January 1, 2019, as discussed in Note 10.

Related Party Transactions of the Notes to Condensed Consolidated Financial Statements included in Part I Item 1.

"Financial Information" .

In addition, the Company has a retroactive reinsurance agreement and a commutation agreement that further reduces its exposure and limits the potential volatility related to AmTrust liabilities, which are discussed in Note 8.

In addition, the Company has a retroactive reinsurance agreement and a commutation agreement that further reduce its exposure and limit the potential volatility related to AmTrust liabilities, as discussed in Note 8.

Reinsurance of the Notes to Condensed Consolidated Financial Statements included in Part I Item 1.

"Financial Information" .

Diversified Reinsurance legacy business comprises a run-off portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe, as well as transactions entered into by Genesis Legacy Solutions ("GLS") as described in Note 1.

Diversified Reinsurance legacy business comprises a run-off portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located primarily in Europe, as well as transactions previously entered into by Genesis Legacy Solutions ("GLS") as described in Note 1.

Basis of Presentation under Legacy Reinsurance Operations.

The Company does not presently underwrite prospective reinsurance risks but may consider selectively deploying underwriting capacity to optimize shareholder returns in support of the Company's Program Services operations.

The Company does not presently underwrite prospective reinsurance risks, though it may selectively deploy underwriting capacity in the future to optimize shareholder returns in support of its Program Services operations, as further discussed under "Business Strategy" below.

Business Strategy

Our strategic focus centers on growing the fee income component of our Program Services business, which will increase our earnings before interest, taxes, depreciation and amortization ("EBITDA") while effectively managing the continuing run-

off of the legacy Maiden alternative asset and reinsurance portfolios.

Our focus on growing our fee business may consider selectively deploying underwriting capacity to optimize shareholder returns in support of this business.

We continue to actively pursue with our existing partners reinsurance mechanisms that would selectively deploy the Company’s underwriting capacity and facilitate and accelerate the growth of our Program Services segment.

We believe this will create the greatest risk-adjusted shareholder returns in order to increase EBITDA and book value for our common shareholders, both near and long-term.

Our assessment is that these areas of strategic focus would enhance our profitability through increased returns, which would also increase the likelihood of fully utilizing the significant net operating loss ("NOL") carryforwards, as described further below, which would increase both GAAP book value and create additional common shareholder value.

The recognition of the deferred tax asset on our Condensed Consolidated Balance Sheet remains a leading priority for the Company to increase its GAAP book value.

As a result of the Combination, as of March 31, 2026 , we hold $221.0 million in alternative investments which include equity securities, equity method investments and other investments in a wide variety of asset classes.

Please refer to the "Liquidity and Capital Resources" section on " Other Investments, Equity Method Investments and Equity Investments" for further information on these alternative asset classes and a detailed discussion of their investment returns.

Recent developments and trends in financial markets, particularly as regards private assets, indicate that it may take longer than expected to achieve those returns and we have factored that into future capital allocation decisions.

Prior to the Combination, Maiden had determined that this asset management strategy did not serve its longer-term strategic goals, which had shifted to a focus on developing or acquiring fee income oriented insurance operations and had ceased making commitments to these alternative asset classes and had begun to dispose of these investments.

Subsequent to the Combination, we have continued to pursue this objective and seek to find appropriate opportunities to dispose of these assets and believe this is a high priority in support of focusing our efforts on growing our Program Services business.

Accordingly, we expect our alternative investment portfolio to be reduced in future periods as we believe it is critical to reposition our balance sheet and increase our liquidity in support of the current initiatives being pursued.

We have not made, and do not expect to make any such new commitments to alternative investments at this time.

While we believe that the Combination will increase the likelihood of achieving our stated objectives, there can be no assurance that the run-off of its insurance liabilities will run-off at levels that will allow us to achieve those goals.

This growth strategy may, from time to time, involve selectively deploying underwriting capacity to optimize shareholder returns in support of the business.

We continue to pursue reinsurance mechanisms with our existing partners that would selectively deploy the Company's underwriting capacity to facilitate and accelerate the growth of our Program Services segment.

We believe this strategy will generate the greatest risk-adjusted shareholder returns and increase EBITDA and book value for our common shareholders over both the near and long term.

We expect these areas of strategic focus to enhance our profitability, which would in turn increase the likelihood of fully utilizing our significant net operating loss ("NOL") carryforwards, as described further below, and thereby increase both GAAP book value and shareholder value.

Recognition of the related deferred tax asset on our Condensed Consolidated Balance Sheet remains a leading priority for the Company.

As a result of the Combination, we held $218.4 million in alternative investments as of June 30, 2026 , including equity securities, equity method investments and other investments across a wide variety of asset classes.

See "Liquidity and Capital Resources - Other Investments, Equity Method Investments and Equity Investments" for further information on these asset classes, including a detailed discussion of their investment returns.

Recent developments and trends in financial markets, particularly with respect to private assets, indicate that it may take longer than expected to achieve those returns and we have factored that into future capital allocation decisions.

Prior to the Combination, Maiden had determined that its asset management strategy did not serve its longer-term strategic goals, which had shifted toward developing or acquiring fee income oriented insurance operations.

Maiden ceased making commitments to these alternative asset classes and began disposing of these investments.

Following the Combination, we have continued to pursue this objective and are seeking appropriate opportunities to dispose of these assets, which we believe is a high priority in support of growing our Program Services business.

Accordingly, we expect our alternative investment portfolio to continue to decrease in future periods, as we believe repositioning our balance sheet and increasing our liquidity is critical in support of our current initiatives.

We have not made, and do not expect to make, any new commitments to alternative investments at this time.

While we believe that the Combination will increase the likelihood of achieving our stated objectives, there can be no assurance that our insurance liabilities will run-off at levels that will allow us to achieve those goals.

As a result, we continue to pursue finality solutions to resolve the AmTrust liabilities not covered by the LPT/ADC Agreement, including through third-parties.

There can be no guarantee that we will execute such finality solutions and these solutions could involve significant charges to execute and we are actively evaluating the potential costs and benefits of such solutions, to the extent they are available to the Company.

There is no guarantee that we will execute such finality solutions and they could involve significant charges to execute.

We are actively evaluating the potential costs and benefits of such solutions, to the extent they become available to the Company.

NOL Carryforwards

We believe the Combination and our ability to increase EBITDA will create opportunities to utilize Maiden's NOL carryforwards that totaled $466.7 million at March 31, 2026.

We believe the Combination and our ability to increase EBITDA will create opportunities to utilize the Company's NOL carryforwards that totaled $471.6 million at June 30, 2026.

Approximately $383.4 million of NOL carryforwards expire in various years beginning in 2029.

As of March 31, 2026, $79.1 million or 16.9% of the Company's NOL carryforwards have no expiry date under the relevant U.S.

As of June 30, 2026, $88.2 million or 18.7% of the Company's NOL carryforwards have no expiry date under the relevant U.S.

The NOL carryforwards combined with additional net deferred tax assets ("DTA") primarily related to Maiden's insurance liabilities result in net U.S.

DTA (before valuation allowance) of $138.7 million or $17.73 per common share at March 31, 2026.

DTA (before valuation allowance) of $139.9 million or $17.88 per common share at June 30, 2026.

Maiden's net U.S.

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For further details on the NOL carryforwards, please see Note 13.

Income Taxes included under Part 1 Item 1 " Financial Information " of the Quarterly Report on Form 10–Q for the three months ended March 31, 2026.

Three Months Ended March 31, 2026 and 2025 Financial Highlights

For the Three Months Ended March 31, 2026 2025 Change

Income Taxes included under Part 1 Item 1 " Financial Information " of the Quarterly Report on Form 10–Q for the six months ended June 30, 2026.

Three and Six Months Ended June 30, 2026 and 2025 Financial Highlights

For the Three Months Ended June 30, 2026 2025 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

Net loss from continuing operations

Net (loss) income

$ (8,082) $ 69,927 $ (78,009)

Net loss from discontinued operations

Basic and diluted (loss) earnings per common share:

Net (loss) income attributable to common shareholders (2)

(1.03) 15.05 (16.08)

Gross premiums written 1,435 1,096 339

Net premiums earned 3,474 2,422 1,052

Fee revenue 3,742 544 3,198

Underwriting loss and fee income (3)

1,047 5,610 (4,563)

Basic and diluted loss per common share:

Net loss attributable to common shareholders (2)

Net investment results (9)

(520) 2,600 (3,120)

Non-GAAP measures:

Non-GAAP operating (loss) earnings (1)

(6,740) 5,394 (12,134)

Non-GAAP basic and diluted operating (loss) earnings per common share (1)

(0.86) 1.12 (1.98)

Annualized non-GAAP operating return on average shareholders' equity (1)

(23.0) % 28.0 % (51.0) %

For the Six Months Ended June 30, 2026 2025 Change

Summary Consolidated Statement of Income Data (unaudited):

($ in thousands except per share data)

Net (loss) income

$ (15,513) $ 69,533 $ (85,046)

Basic and diluted (loss) earnings per common share:

Net (loss) income attributable to common shareholders (2)

(1.99) 18.80 (20.79)

Gross premiums written 4,090 1,096 2,994

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Fee revenue 6,862 1,351 5,511

Underwriting and fee (loss) income (3)

Underwriting loss and fee income (3)

(1,130) 5,845 (6,975)

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Non-GAAP measures:

Non-GAAP operating loss (1)

Non-GAAP operating (loss) earnings (1)

(17,352) 5,000 (22,352)

Non-GAAP basic and diluted operating loss per common share (1)

Non-GAAP basic and diluted operating (loss) earnings per common share (1)

(2.23) 1.32 (3.55)

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(28.9) % 13.0 % (41.9)

March 31, 2026 December 31, 2025 Change

June 30, 2026 December 31, 2025 Change

Consolidated Financial Condition ($ in thousands except per share data)

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Earnings per Common Share " for the calculation of basic and diluted income (loss) per common share.

(3) Underwriting and fee income or loss is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

(3) Underwriting income (loss) and fee income (loss) is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

See " Key Financial Measures " for additional information.

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See " Key Financial Measures " for additional information.

(7) Diluted book value per common share is calculated by dividing shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options and restricted shares (assuming exercise of all dilutive share based awards).

(7) Diluted book value per common share is calculated by dividing shareholders' equity, adjusted for assumed proceeds from the exercise of dilutive options, by the number of outstanding common shares plus dilutive options, restricted shares and performance based shares (assuming exercise of all dilutive share based awards).

See " Key Financial Measures " for additional information.

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Key Financial & Operating Measures

In addition to our key financial measures presented in accordance with GAAP in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Loss, management uses certain non-GAAP financial measures to evaluate the Company's financial performance and the overall growth in value generated for the Company’s common shareholders.

In addition to our key financial measures presented in accordance with GAAP in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive (loss) income, management uses certain non-GAAP financial measures to evaluate the Company's financial performance and the overall growth in value generated for the Company’s common shareholders.

Management believes that these measures, which may be defined differently by other companies, explain the Company’s results to investors in a manner that allows for a more complete understanding of the underlying trends in the Company’s business.

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It also excludes on a non-recurring basis:

(1) loss from discontinued operations, net of income tax and;

(1) the bargain purchase gain resulting from the Combination on May 27, 2025, (2) the change in fair value of the earn out liability;

(3) litigation costs from GLS related arbitration;

(4) restructuring and severance costs;

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We excluded net realized investment gains (losses), interest in income (loss) of equity method investments and foreign exchange and other gains (losses) as we believe these are influenced by market opportunities and other factors.

We do not believe amortization of intangible assets, the net loss from our discontinued operations;

We do not believe amortization of intangible assets, the bargain purchase gain on the Combination, the change in fair value of the earn out liability, litigation costs from GLS related arbitration;

restructuring and severance costs;

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We believe all of these amounts are substantially independent of our business and any potential future underwriting process, therefore their inclusion would distort the analysis of underlying trends in our operations.

Underwriting loss and fee income is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

Underwriting income and fee income is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

For purposes of these non-GAAP operating measures, the fee-generating business which is included in our Program Services segment, is considered part of the underwriting operations of the Company.

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"Financial Statements" of this Quarterly Report on Form 10-Q.

The Company does not present certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three months ended March 31, 2026, as it believes that as the run-off of our reinsurance portfolios progresses, such ratios are increasingly not meaningful and of little value to readers as they evaluate the financial results of the Company.

The Company does not present certain non-GAAP measures such as combined ratio and its related components in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026, as it believes that as the run-off of our reinsurance portfolios progresses, such ratios are increasingly not meaningful and of little value to readers as they evaluate the financial results of the Company.

While an important metric of success, underwriting and fee income does not reflect all components of profitability, as it does not recognize the impact of investment income earned on premiums between the time premiums are received and the time loss payments are ultimately paid to clients.

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Premium produced is an operating metric determined by management as a byproduct of the program services fees it earns and is paid by clients.

Premium produced is equal to the premium written by an MGA or capacity provider, and management believes this measure is important in understanding the underlying production trends of its Program Services business and the

fees it earns.

Where available, the Company utilizes underlying premium produced as reported by its clients.

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Significant Accounting Policies included under Part II, Item 8 "Financial Statements and Supplementary Data" of our Annual Report Form 10-K filed on March 13, 2026 for a full understanding of the Company’s accounting policies.

There have been no changes during the three months ended March 31, 2026 to those critical accounting policies and estimates disclosed in our Annual Report.

There have been no changes during the three and six months ended June 30, 2026 to those critical accounting policies and estimates disclosed in our Annual Report.

Results of Operations

As a result of the Combination on May 27, 2025, the Company acquired Maiden's operations, which includes significant underwriting and investment activities, along with operating expenses and interest expense associated with Maiden's senior notes outstanding.

Maiden's results of operations are reported for the three months ended March 31, 2026 only and because the prior period results of operations do not include the operations of Maiden, the year-over-year comparisons are generally not directly comparable.

The following table sets forth our selected unaudited Condensed Consolidated Statement of Operations data for the three months ended March 31, 2026 and 2025:

For the Three Months Ended March 31,

Maiden's results for the three and six months ended June 30, 2025 only include operations subsequent to May 27, 2025 therefore the year-over-year comparisons are generally not directly comparable.

The following table sets forth our selected unaudited Condensed Consolidated Statement of Operations data for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Gross premiums written

$ 1,435 $ 1,096 $ 4,090 $ 1,096

Net premiums written

$ 1,436 $ 1,095 $ 4,090 $ 1,095

Net premiums earned

$ 3,474 $ 2,422 $ 6,631 $ 2,422

Fee revenue 3,742 544 6,862 1,351

Net loss and LAE

(1,515) 5,961 (3,770) 5,961

Commission and other acquisition expenses

(983) (394) (2,456) (394)

General and administrative expenses (1)

(3,671) (2,923) (8,397) (3,495)

Underwriting loss & fee income (2)

Underwriting & fee income (loss) (2)

1,047 5,610 (1,130) 5,845

Other general and administrative expenses (1)

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Net investment income

Net realized and unrealized investment gains 1,339 —

Foreign exchange and other gains

2,454 1,542 5,062 1,576

Net realized and unrealized investment (losses) gains (2,984) 1,058 (1,645) 1,058

Change in fair value of earn out liability — (2,679) — (2,679)

Gain on bargain purchase — 73,590 — 73,590

Foreign exchange and other gains (losses)

2,278 (5,102) 4,498 (5,102)

Interest and amortization expenses (4,177) (1,519) (8,073) (1,519)

Income tax expense

Interest in loss of equity method investments

Net loss from continuing operations

Income tax benefit (expense)

112 (3) 106 (95)

Loss from discontinued operations, net of income tax (478) —

Net loss $ (7,431) $ (394)

(1) Underwriting loss and fee income related general and administrative expenses is a non-GAAP measure.

Interest in income of equity method investments

Net (loss) income $ (8,082) $ 69,927 $ (15,513) $ 69,533

(1) Underwriting and fee income (loss) related general and administrative expenses is a non-GAAP measure.

Please refer to "General and Administrative Expenses" below for additional information related to these corporate expenses and the reconciliation to those presented in our unaudited Condensed Consolidated Statements of Operations.

(2) Underwriting loss and fee income is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

(2) Underwriting and fee income (loss) is a non-GAAP measure and is calculated as net premiums earned plus fee revenue less net loss and LAE, commission and other acquisition expenses and general and administrative expenses directly related to underwriting activities.

(3) The Company does not present certain non-GAAP measures such as combined ratio and its related components in its results of operation, as it believes that as the run-off of its reinsurance portfolios progresses, such ratios are increasingly not meaningful and of less value to readers as they evaluate our financial results.

Results for the three months ended March 31, 2026

Net loss for the three months ended March 31, 2026 was $7.4 million compared to a net loss of $0.4 million for the same respective period in 2025.

An underwriting loss from the Legacy Reinsurance segment combined with higher operating and interest expenses was partially offset by increased Program Services fee income, net investment income, unrealized gains from investment activities as well as net foreign exchange and other gains.

• The Legacy Reinsurance segment underwriting loss of $3.3 million for the three months ended March 31, 2026 largely due to:

• On a current accident year basis, the underwriting loss for the Legacy Reinsurance segment was $3.0 million for the three months ended March 31, 2026.

• Our Legacy Reinsurance segment experienced adverse prior year loss development ("PPD") of $0.3 million in the first quarter of 2026, which included AmTrust Reinsurance Legacy adverse PPD of $0.6 million partly offset by Diversified Reinsurance Legacy favorable PPD of $0.3 million.

• The underwriting loss includes amortization of $0.8 million for the fair value adjustment on the discount on acquired net loss reserves due to the Combination which is recurring and amortized over the remaining claims settlement period.

• Program Services segment produced net fee income of $1.6 million for the three months ended March 31, 2026 compared to net fee income of $0.2 million for the same respective period in 2025.

Fee revenue increased to $3.1 million for the three months ended March 31, 2026 compared to $0.8 million for the same period in 2025 derived from fees from both new and existing client programs.

• combined income from investment activities totaled $3.9 million for the three months ended March 31, 2026 compared to $0.0 million for the same period in 2025 primarily due to the following:

• net investment income increased to $2.6 million for the three months ended March 31, 2026 compared to $34.0 thousand that was earned for the same respective period in 2025;

• realized and unrealized investment gains of $1.3 million for the three months ended March 31, 2026 compared to net investment losses of $0.0 million for the same respective period in 2025;

• interest in loss of equity method investments was $1.0 thousand for the three months ended March 31, 2026 compared to $0.0 million for the same respective period in 2025.

• corporate general and administrative expenses increased to $7.5 million for the three months ended March 31, 2026 compared to $0.6 million for the same period in 2025 largely due to the inclusion of Maiden operating costs;

• foreign exchange and other gains of $2.2 million for the three months ended March 31, 2026, compared to foreign exchange and other losses of $0.0 million for the same period in 2025, primarily due to appreciation of the U.S dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

Results for the three months ended June 30, 2026

Net loss for the three months ended June 30, 2026 was $8.1 million compared to net income of $69.9 million for the same respective period in 2025.

Net income for the three months ended June 30, 2025 was substantially the result of the gain on bargain purchase of $73.6 million due to the completion of the Combination on May 27, 2025 as discussed in Note 14.

Business Combination included in Part 1.

Financial Information .

Excluding the gain on bargain purchase, our net loss was $3.7 million for the three months ended June 30, 2025.

In the second quarter of 2026, higher fee income from Program Services and foreign exchange and other gains were more than offset by an underwriting loss from Legacy Reinsurance (compared to underwriting income in the second quarter of 2025), higher corporate expenses and debt service costs, and lower investment results.

Excluding the gain on bargain purchase, the decline in results was driven by the following:

• The Legacy Reinsurance segment underwriting loss of $1.3 million for the three months ended June 30, 2026 compared to underwriting income of $5.8 million for the same respective period in 2025 largely due to:

• Higher adverse prior year loss development ("PPD") of $1.9 million in the second quarter of 2026.

compared to favorable PPD of $7.8 million for the three months ended June 30, 2025, primarily within the AmTrust Reinsurance legacy business.

• Higher amortization of $0.8 million related to the fair value adjustment on intangible assets acquired in the Combination, compared to $0.4 million for the same period in 2025.

This amortization is recurring and is recognized over the remaining claims settlement period;

partly offset by:

• Improved underwriting results on a current accident year basis, with underwriting income of $0.6 million for the three months ended June 30, 2026 compared to an underwriting loss of $2.0 million for the same period in 2025.

• Combined investment loss of $0.5 million for the three months ended June 30, 2026 compared to combined investment income of $2.6 million for the same period in 2025 primarily due to:

• net realized and unrealized investment losses of $3.0 million for the three months ended June 30, 2026 compared to net realized and unrealized investment gains of $1.1 million for the same period in 2025;

partly offset by:

• increased net investment income of $2.5 million for the three months ended June 30, 2026 compared to $1.5 million for the same period in 2025.

• Corporate general and administrative expenses increased to $6.8 million for the three months ended June 30, 2026 compared to $2.6 million for the same period in 2025.

The underwriting loss in the Legacy Reinsurance segment and higher corporate expenses were partly offset by the following:

• Program Services segment produced net fee income of $2.4 million for the three months ended June 30, 2026 compared to a net loss of $0.2 million for the same period in 2025.

• Fee revenue increased to $3.7 million for the three months ended June 30, 2026 compared to $0.5 million for the same period in 2025 derived from fees from both new and existing client programs.

• Foreign exchange and other gains of $2.3 million for the three months ended June 30, 2026, including $0.4 million of foreign exchange gains due to appreciation of the U.S dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in euro along with revaluation gains of $1.8 million on other assets, compared to foreign exchange losses of $5.1 million for the same period in 2025.

Results for the six months ended June 30, 2026

Net loss for the six months ended June 30, 2026 was $15.5 million compared to net income of $69.5 million for the same respective period in 2025.

Net income for the six months ended June 30, 2025 was substantially the result of a gain on bargain purchase of $73.6 million from the Combination on May 27, 2025 as discussed in Note 14.

Business Combination included in Part I.

Financial Information .

Excluding the gain on bargain purchase from May 27, 2025, the Company incurred a net loss of $4.1 million for the six months ended June 30, 2025.

Higher fee income from Program Services, along with improved foreign exchange and other gains, and higher investment income in the six months ended June 30, 2026 were more than offset by a Legacy Reinsurance underwriting loss (compared to underwriting income in the prior period) driven by adverse prior period development from AmTrust Reinsurance, along with higher corporate expenses and debt service.

Excluding the gain on bargain purchase, the decline in results was driven by the following:

The Legacy Reinsurance segment underwriting loss was $5.1 million for the six months ended June 30, 2026 compared to underwriting income of $5.8 million for the same period in 2025 largely due to:

• Higher adverse PPD of $2.2 million for the six months ended June 30, 2026 compared to favorable PPD of $7.8 million for the same period in 2025 primarily within AmTrust Reinsurance legacy business;

• A higher underwriting loss on a current accident year basis of $2.9 million for the six months ended June 30, 2026, compared to an underwriting loss of $2.0 million for the six months ended June 30, 2025 was experienced, due primarily to amortization of $1.7 million related to the fair value adjustment on acquired intangible assets in the Combination, compared to $0.4 million for the same period in 2025.

This amortization is recurring and recognized over the remaining claims settlement period

Corporate general and administrative expenses increased to $14.3 million for the six months ended June 30, 2026 compared to $3.1 million for the same period in 2025, primarily as a result of the Combination.

The underwriting loss in the Legacy Reinsurance segment and higher corporate expenses were partly offset by the following:

• Program Services segment produced net fee income of $4.0 million for the six months ended June 30, 2026 compared to fee income of $12.0 thousand for the same period in 2025:

◦ Fee revenue increased to $6.9 million for the six months ended June 30, 2026 compared to $1.4 million for the same period in 2025 resulting from higher premium produced by both new and existing client programs.

• Combined income from investment activities of $3.4 million for the six months ended June 30, 2026 compared to $2.6 million for the same period in 2025 primarily due to:

• Net investment income of $5.1 million for the six months ended June 30, 2026 compared to $1.6 million that was earned for the same period in 2025;

partly offset by

• Realized and unrealized investment losses of $1.6 million for the six months ended June 30, 2026 compared to gains of $1.1 million for the same period in 2025.

• Foreign exchange and other gains of $4.5 million for the six months ended June 30, 2026, including $2.4 million of foreign exchange gains due to appreciation of the U.S dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro, and revaluation gains of $2.0 million on other assets;

compared to foreign exchange losses of $5.1 million for the same period in 2025 due to weakening of the U.S dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

Net Premiums Written

Net premiums written by our reportable segment, reconciled to the total consolidated net premiums written for the three months ended March 31, 2026 and 2025 are detailed below:

For the Three Months Ended March 31, 2026 2025 Change in

Net premiums written for our Legacy Reinsurance reportable segment, reconciled to the total consolidated net premiums written for the three and six months ended June 30, 2026 and 2025 are detailed below:

For the Three Months Ended June 30, 2026 2025 Change in

($ in thousands) Total Total (1)

2 unchanged sentences

Total Legacy Reinsurance Segment $ 1,436 $ 1,095 $ 341

Net premiums written for the three months ended March 31, 2026 increased to $2.7 million which was split as follows:

• Premiums written in Diversified Reinsurance legacy business was $0.8 million for the three months ended March 31, 2026.

For the Six Months Ended June 30, 2026 2025 Change in

($ in thousands) Total Total (1)

Diversified Legacy Business $ 1,289 $ 1,380 $ (91)

AmTrust Reinsurance Legacy Business 2,801 (285) 3,086

Total Legacy Reinsurance Segment $ 4,090 $ 1,095 $ 2,995

(1) Legacy Reinsurance underwriting results only include the post-combination period from May 27, 2025 to June 30, 2025.

Net premiums written for the three and six months ended June 30, 2026 increased to $1.4 million and $4.1 million, respectively, compared to $1.1 million for the same respective periods in 2025 which was split as follows:

• Premiums written in Diversified Reinsurance legacy business decreased by $0.9 million and $0.1 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025.

As discussed in Note 1.

Assets Held for Sale of the Notes to Condensed Consolidated Financial Statements in Part I Item 1.

"Financial Information", Maiden LF and Maiden GF are no longer writing new business and the non-underwriting related assets and liabilities of Maiden GF are presented as held-for-sale in our condensed consolidated financial statements.

Maiden LF has been recently placed into run-off operations and its assets and liabilities are no longer considered as held for sale at March 31, 2026.

• Premiums written in AmTrust Reinsurance legacy business was $1.9 million for the three months ended March 31, 2026, which emanated from premium adjustments to the AmTrust Quota Share, terminated effective January 1, 2019.

Basis of Presentation of the Notes to Condensed Consolidated Financial Statements in Part I Item 1.

"Financial Information", Maiden LF and Maiden GF are no longer writing new business.

Maiden LF and Maiden GF have run-off operations and their assets and liabilities are no longer considered held for sale at June 30, 2026.

• Premiums written in AmTrust Reinsurance legacy business increased by $1.2 million and $3.1 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025 which emanated from premium adjustments to Specialty Risk and Extended Warranty business in the AmTrust Quota Share agreement.

The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019.

Please refer to the analysis below of our Diversified Reinsurance and AmTrust Reinsurance Legacy Business in the Legacy Reinsurance segment for further details.

Net Premiums Earned

Net premiums earned for the three months ended March 31, 2026 were $3.2 million.

Net premiums earned by our reportable segment, reconciled to the total consolidated net premiums earned, for the three months ended March 31, 2026 and 2025 are detailed as follows:

For the Three Months Ended March 31, 2026 2025 Change in

Net premiums earned by our Legacy Reinsurance reportable segment, reconciled to the total consolidated net premiums earned, for the three and six months ended June 30, 2026 and 2025 are detailed as follows:

For the Three Months Ended June 30, 2026 2025 Change in

($ in thousands) Total Total (1)

2 unchanged sentences

Total Legacy Reinsurance Segment $ 3,474 $ 2,422 $ 1,052

Net premiums earned under Diversified Reinsurance legacy business for the three months ended March 31, 2026 were $0.9 million.

Maiden LF and Maiden GF continue to earn premiums but are no longer writing new business and the non-underwriting related assets and liabilities of Maiden GF are presented as held-for-sale in our condensed consolidated financial statements as discussed above.

Maiden LF has been placed into run-off operations and its assets and liabilities are no longer considered as held for sale at March 31, 2026.

Net premiums earned under AmTrust Reinsurance legacy business for the three months ended March 31, 2026 were $2.3 million.

This was earned entirely under the AmTrust Quota Share.

Please refer to the analysis below of our Diversified Reinsurance and AmTrust Reinsurance under the Maiden Legacy segment further below for further details.

Fee Revenue is primarily produced by our Program Services segment.

For the Six Months Ended June 30, 2026 2025 Change in

($ in thousands) Total Total (1)

Diversified Reinsurance Legacy Business $ 1,438 $ 1,390 $ 48

AmTrust Reinsurance Legacy Business 5,193 1,032 4,161

Total Legacy Reinsurance Segment (1)

$ 6,631 $ 2,422 $ 4,209

(1) Legacy Reinsurance underwriting results only include the post-combination period from May 27, 2025 to June 30, 2025.

Net premiums earned under Diversified Reinsurance legacy business for the three and six months ended June 30, 2026 were $0.6 million and $1.4 million, respectively, compared to $1.4 million for the same periods in 2025.

Maiden LF and Maiden GF continue to earn premiums but are no longer writing new business.

Maiden LF and Maiden GF both have run-off operations and their assets and liabilities are no longer considered held for sale at June 30, 2026.

Net premiums earned under AmTrust Reinsurance legacy business for the three and six months ended June 30, 2026 were $2.9 million and $5.2 million, respectively, compared to $1.0 million for the same periods in 2025.

This was earned entirely under the AmTrust Quota Share agreement for Specialty Risk and Extended Warranty business.

Please refer to the separate analysis of Diversified Reinsurance and AmTrust Reinsurance results in the Legacy Reinsurance segment below for additional details.

Fee revenue is produced solely by our Program Services segment.

Revenue is measured as the amount of consideration Kestrel expects to receive in exchange for providing services to its customer and is generally governed by its managed service agreement.

This agreement outlines the structure of the Authorized Program for which Kestrel oversees the placement of

effective insurance policies in exchange for a fee.

These agreements outline the structure of the authorized program under which Kestrel oversees the placement of insurance policies in exchange for a fee.

These agreements may also include other provisions, such as minimum fee arrangements or cancellation provisions, which may impact revenue recognition.

Capacity distribution fees are collected from program managers or MGAs for the placement of effective insurance policies on behalf of our customer, which is considered a single performance obligation.

Capacity distribution fees are collected from program managers or MGAs for the placement of insurance policies on behalf of our customer and are considered a single performance obligation.

Fee revenue earned for the three months ended March 31, 2026 was $3.1 million, compared to $0.8 million for the same period in 2025.

The increase was primarily due to increased premium volume from both new and existing client programs.

Premium produced by client programs for the three months ended March 31, 2026 was $94.2 million, compared to $23.3 million for the same period in 2025.

Fee revenue was $3.7 million and $6.9 million for the three and six months ended June 30, 2026 respectively, compared to $0.5 million and $1.4 million for the same periods in 2025.

The increase in both periods was due to higher premium volume from both new and existing client programs.

Fee revenue from our largest client accounted for $3.2 million or 85.8% and $5.6 million or 82.0% of total fee revenue earned for the three and six months ended June 30, 2026, respectively;

compared to fee revenue of $0.2 million or 33.5% and $0.5 million or 39.5%, for the three and six months ended June 30, 2025, respectively.

For the three months ended June 30, 2026, there were two new accounts that contributed $0.1 million of fee revenue earned.

For the six months ended June 30, 2026, there were three new accounts that contributed $0.2 million of fee revenue earned during 2026.

Premium produced by client programs for the three and six months ended June 30, 2026 totaled $109.6 million and $203.8 million, respectively, compared to $18.9 million and $42.2 million for the same periods in 2025 driven by recent growth in our largest client program.

Premium produced by client programs is an operating metric determined by management as a byproduct of the program services fees it earns and is paid by clients;

please see Key Financial & Operating Measures for further explanation.

see Key Financial & Operating Measures for further details.

Net Investment Income

Net investment income for the three months ended March 31, 2026 increased by $2.5 million, compared to the same period in 2025 due to the inclusion of Maiden's legacy fixed income and alternative investment portfolios in connection with the Combination.

Annualized average book yields increased to 3.6% for the three months ended March 31, 2026, compared to 3.5% for the same period in 2025.

Net interest income from our loan receivable from related party was $1.1 million for the three months ended March 31, 2026.

The net loan receivable from related party had an average balance of $82.7 million and carried a weighted average interest rate of 5.5% for the three months ended March 31, 2026.

Floating rate investments comprised 40.2% of our total fixed income investments at March 31, 2026 compared to 52.0% at December 31, 2025.

The following table details our average aggregate fixed income assets (at cost) and annualized investment book yield for the three months ended March 31, 2026 and 2025:

For the Three Months Ended March 31,

Net investment income for the three and six months ended June 30, 2026 increased by $0.9 million and increased by $3.5 million, respectively, compared to the same periods in 2025, primarily due to the Combination.

Annualized average book yields increased to 3.3% and 3.4% for the three and six months ended June 30, 2026, respectively, compared to 3.1% and 1.6% for the same periods in 2025.

Net interest income from the Company's loan receivable from related party was $1.0 million and $2.2 million for the three and six months ended June 30, 2026, respectively, compared to $0.7 million for the same periods in 2025.

The net loan receivable from related party had an average balance of $74.0 million and $78.3 million, respectively, and carried a weighted average interest rate of 5.5% and 5.5% for both the three and six months ended June 30, 2026, respectively.

The net loan carried a weighted average interest rate of 5.8% on an average balance of $107.5 million for the three and six months ended June 30, 2025, respectively.

Floating rate investments comprised 39.3% of total fixed income investments at June 30, 2026 compared to 50.4% at December 31, 2025.

The following table details our average aggregate fixed income assets (at cost) and annualized investment book yield for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

4 unchanged sentences

Annualized investment book yield 3.3 % 3.1 % 3.4 % 1.6 %

(1) Annualized income from fixed income assets includes annualized interest income from our available-for-sale ("AFS") portfolio, cash and restricted cash, funds withheld receivable, and net loan receivable from related party and is based on amounts disclosed in our quarterly U.S.

(1) Annualized income from fixed income assets includes annualized interest income from our available-for-sale ("AFS") bond portfolio, cash and restricted cash, funds withheld receivable, and net loan receivable from related party and is based on amounts disclosed in our quarterly U.S.

GAAP consolidated financial statements.

(2) Average aggregate fixed income assets include AFS portfolio, cash and restricted cash, funds withheld receivable, and net loan receivable from related party and is computed as an average of the amounts disclosed in our quarterly U.S.

(2) Average aggregate fixed income assets include AFS bond portfolio, cash and restricted cash, funds withheld receivable, and net loan receivable from related party and is computed as an average of the amounts disclosed in our quarterly U.S.

GAAP consolidated financial statements.

Net Realized and Unrealized Investment Gains

Net realized and unrealized investment gains of $1.3 million were recognized for the three months ended March 31, 2026.

Net realized and unrealized investment gains for the three months ended March 31, 2026 are summarized in the table below by investment category:

For the Three Months Ended March 31, 2026

Net realized gains:

Net realized and unrealized investment (losses) gains for the three and six months ended June 30, 2026 and 2025 are summarized below by investment category:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Net realized gains:

Fixed maturity securities $ 65 $ 764 $ 117 $ 764

2 unchanged sentences

Other investments (3,049) 248 (1,762) 248

Total net unrealized gains 1,287

Net realized and unrealized investment gains

Net unrealized gains for other investments in the three months ended March 31, 2026 reflect fair value adjustments in the Maiden legacy alternative investment portfolio during the reporting period.

Equity securities — 46 — 46

Total net unrealized (losses) gains

(3,049) 294 (1,762) 294

Net realized and unrealized investment (losses) gains

$ (2,984) $ 1,058 $ (1,645) $ 1,058

Net realized and unrealized investment (losses) gains for other investments in the three and six months ended June 30, 2026 and 2025 reflect fair value adjustments in the Maiden legacy alternative investment portfolio during the respective periods.

The results for the three and six months ended June 30, 2026 largely reflect unrealized investment losses primarily on alternative investments held in the energy sector which faced downward pricing pressure as geopolitical tensions and Middle East supply concerns eased during the second quarter of 2026.

Net Loss and LAE

Net loss and LAE incurred for the three months ended March 31, 2026 were $2.3 million.

Net incurred losses were impacted by net adverse PPD of $0.3 million for the three months ended March 31, 2026.

Excluding the impact of PPD, current year losses were $2.0 million for the three months ended March 31, 2026.

The net PPD is discussed in greater detail in the Legacy Reinsurance segment discussion and analysis and is entirely associated with the run-off of unearned premium for terminated reinsurance contracts in the legacy reinsurance operations.

Net loss and LAE incurred for the three and six months ended June 30, 2026 were $1.5 million and $3.8 million, respectively, compared to $(6.0) million for the same periods in 2025.

Net incurred losses were impacted by net adverse PPD of $1.9 million and $2.2 million for the three and six months ended June 30, 2026;

compared to favorable PPD of $7.8 million for the three and six months ended June 30, 2025, primarily driven by development on AmTrust Reinsurance legacy business.

Current accident year ("CAY") net loss and LAE excluding the impact of PPD generated CAY income of $0.4 million and CAY loss of $1.6 million for the three and six months ended June 30, 2026, respectively, and CAY loss of $1.8 million for the three and six months ended June 30, 2025, respectively.

The net PPD is discussed in greater detail in the Legacy Reinsurance segment analysis and is entirely associated with the run-off of unearned premium for terminated reinsurance contracts in the Legacy Reinsurance operations.

The cessation of active reinsurance underwriting on prospective risks included the termination of the AmTrust Quota Share and European Hospital Liability Quota Share effective January 1, 2019.

Commission and Other Acquisition Expenses

Commission and other acquisition expenses incurred for the three months ended March 31, 2026 were $1.5 million.

Commission and other acquisition expenses incurred for the three and six months ended June 30, 2026 were $1.0 million and $2.5 million, respectively, compared to $0.4 million for the three and six months ended June 30, 2025.

Please see the Legacy Reinsurance segment analysis below for further information.

1 unchanged sentence

General and administrative expenses include corporate expenses and segment expenses segregated for analytical purposes as a component of underwriting income.

Total general and administrative expenses incurred for the three months ended March 31, 2026 increased by $10.6 million, compared to the same period in 2025 primarily due to the inclusion of Maiden's operations subsequent to May 27, 2025 as a result of the Combination.

General and administrative expenses for the three months ended March 31, 2026 and 2025 were comprised of:

For the Three Months Ended March 31,

Total general and administrative expenses incurred for the three and six months ended June 30, 2026 increased by $5.0 million and $16.1 million, compared to the same respective periods in 2025 primarily due to the inclusion of Maiden's operations subsequent to May 27, 2025 as a result of the Combination.

General and administrative expenses for the three and six months ended June 30, 2026 and 2025 were comprised of:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

2 unchanged sentences

General and administrative expenses – corporate

6,822 2,570 14,340 3,141

Total general and administrative expenses

$ 10,493 $ 5,493 $ 22,737 $ 6,636

Corporate expenses for the three months ended March 31, 2026 were driven by higher compensation costs, legal fees, and professional fees.

Expenses incurred this period that will not be recurring through the remainder of 2026 include certain compensation costs of $1.6 million and the vesting of certain stock-based awards of $1.4 million for the three months ended March 31, 2026 compared to $0.0 million for the same period in 2025.

Corporate expenses for the three and six months ended June 30, 2026 were driven by higher compensation costs, legal fees, and professional fees.

These included $1.2 million and $2.6 million of vesting expense on certain stock-based awards for the three and six months ended June 30, 2026, respectively, compared to $0.2 million for the same periods in 2025.

Total general and administrative expenses discussed above include certain non-recurring items as discussed further in Non-GAAP Measures .

We do not believe litigation costs related to the GLS arbitration, restructuring and severance costs, and costs incurred in connection with the Combination on May 27, 2025 are representative of our future operating expenditures.

For the three months ended June 30, 2026, we recognized net non-recurring income of $0.2 million, consisting of $0.7 million of restructuring and severance costs, offset by a $0.1 million release of cost accruals related to the Combination and $0.8 million of net recoupment of attorneys' fees related to the GLS arbitration, including a $1.0 million award of attorneys' fees.

This compares to net non-recurring expense of $1.9 million for the three months ended June 30, 2025, consisting primarily of $1.8 million for restructuring and severance costs.

For the six months ended June 30, 2026, we recognized net non-recurring income of $0.6 million, consisting of $1.0 million of restructuring and severance costs, offset by a $0.8 million release of cost accruals related to the Combination and $0.9 million of net recoupment of attorneys' fees related to the GLS arbitration, including a $1.0 million award of attorneys' fees.

This compares to net non-recurring expense of $1.9 million for the six months ended June 30, 2025, consisting primarily of $1.8 million for restructuring and severance costs.

Excluding these non-recurring items, total general and administrative expenses were $10.7 million and $23.4 million for the three and six months ended June 30, 2026, respectively, compared to $3.6 million and $4.7 million for the same periods in 2025.

Interest and Amortization Expenses

Total interest and amortization expenses incurred for the three months ended March 31, 2026 were $3.9 million which included:

• Interest expense of $4.8 million on the outstanding senior notes issued by Maiden in 2016 and Maiden Holdings North America, Ltd.

("Maiden NA") in 2013 ("Senior Notes") in the three months ended March 31, 2026, that were acquired upon completion of the merger;

• Amortization expense for the fair value adjustment on the Senior Notes was $0.3 million for the three months ended March 31, 2026.

Total interest and amortization expenses incurred for the three and six months ended June 30, 2026 were $4.2 million and $8.1 million, respectively, compared to $1.5 million for the same periods in 2025.

This consisted of the following items:

• Interest expense of $4.8 million and $9.6 million on the outstanding senior notes issued by Maiden in 2016 and Maiden Holdings North America, Ltd.

("Maiden NA") in 2013 ("Senior Notes") in the three and six months ended June 30, 2026, respectively, compared to $1.8 million for the same respective periods in 2025;

• Amortization expense for the fair value adjustment on the Senior Notes was $0.3 million and $0.6 million for the three and six months ended June 30, 2026, respectively, compared to $0.1 million for the same respective periods in 2025.

The difference between the principal amount of the acquired Senior Notes and their fair market value at closing of the Combination is being amortized over those securities' remaining life;

which was partially offset by:

• Amortization income for the fair value adjustment of $1.2 million for the net loan receivable from related party for the three months ended March 31, 2026.

• Amortization income for the fair value adjustment of $0.9 million and $2.1 million for the net loan receivable from related party for the three and six months ended June 30, 2026, respectively, compared to $0.4 million for the same respective periods in 2025.

Please refer to " Notes to Condensed Consolidated Financial Statements (unaudited) Note 7.

Long Term Debt " for further details on the Senior Notes.

The weighted average effective interest rate for the Senior Notes was 11.7% for the three months ended March 31, 2026.

Foreign Exchange and Other Gains

The weighted average effective interest rate for the Senior Notes was 11.7% for the three and six months ended June 30, 2026 and 2025.

Gain on Bargain Purchase

As discussed in Part I, Item 1.

Financial Information:

Business Combination included in this Form 10-Q, the gain on bargain purchase of $73.6 million recognized in the three and six months ended June 30, 2025 was the differential between the fair value of net assets of Maiden acquired on May 27, 2025 as a result of the Combination and the equity consideration effectively transferred to Maiden shareholders on that date.

This was based on the initial assessment of fair values acquired.

Change in Earn out Liability

Pursuant to terms of the Combination, the former Kestrel equityholders are eligible to earn additional contingent consideration up to the lesser of (x) $45.0 million payable in common shares of Kestrel Group, upon the achievement of certain EBITDA milestones by the businesses that Kestrel conducted immediately prior to the closing and any extensions of such businesses or related or ancillary businesses existing thereafter subsequent to completion of the transaction on May 27, 2025 through May 31, 2028 ("Performance Period"), and (y) 2.75 million common shares of Kestrel Group.

During the three and six months ended June 30, 2026, there was no earn out liability recognized by the Company based upon current estimates of Kestrel business for the Performance Period, including performance of the Program Services business through June 30, 2026.

During the three and six months ended June 30, 2025, the earn out liability increased by $2.7 million based upon initial estimates of the Kestrel business for the Performance Period, including the performance of the program services business through June 30, 2025, which was recorded in our condensed consolidated statement of operations.

Foreign Exchange and Other Gains (Losses)

Foreign currency fluctuations are primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets in our Legacy Reinsurance segment.

Net foreign exchange and other gains of $2.2 million were realized for the three months ended March 31, 2026, compared to net foreign exchange and other losses of $0.0 million for the same period in 2025.

Foreign exchange and other gains for the three months ended March 31, 2026 included a revaluation gain of $0.2 million on a contingent receivable held in relation to an equity investment in the insurance distribution industry that was sold prior to the Combination.

Under ASC 805, the earn out consideration for this contingent receivable is adjusted to fair value at each reporting period with any changes in fair value reported immediately in net income through foreign exchange and other gains.

For the three months ended March 31, 2026, net foreign exchange gains of $2.0 million were attributable to appreciation of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

Our non-USD denominated liabilities at March 31, 2026 included net loss reserves of $254.4 million.

Our foreign currency asset exposures at March 31, 2026 included $97.4 million of fixed maturity euro denominated bonds managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $33.5 million of real estate investments denominated in Canadian dollars, as well as $7.4 million of funds withheld receivable denominated in various non-USD currencies.

Net foreign exchange and other gains of $2.3 million and $4.5 million were realized for the three and six months ended June 30, 2026, respectively, compared to net foreign exchange and other losses of $5.1 million for the same periods in 2025.

Foreign exchange and other gains for the three and six months ended June 30, 2026 included revaluation gains of $1.8 million and $2.0 million, respectively, for a contingent receivable held in relation to an equity investment in the insurance distribution industry sold which was prior to the Combination.

Under ASC 805, the earn out consideration for this contingent receivable is adjusted to fair value at each period with any changes in fair value reported immediately in net income through foreign exchange and other gains.

This compared to $0 in revaluation adjustments for the same respective periods in 2025.

For the three and six months ended June 30, 2026, net foreign exchange gains of $0.4 million and $2.4 million were attributable to appreciation of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in non-USD currencies (namely the British pound and euro for the year-to-date period and euro only for the second quarter).

For the three and six months ended June 30, 2025, net foreign exchange losses of $5.1 million were attributable to significant weakening of the U.S.

dollar on re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

Our non-USD denominated liabilities at June 30, 2026 included net loss reserves of $233.1 million.

Our foreign currency asset exposures at June 30, 2026 included $89.3 million of fixed maturity euro denominated bonds managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $33.4 million of real estate investments denominated in Canadian dollars, as well as $6.4 million of funds withheld receivable denominated in various non-USD currencies.

Results by Reportable Segment

Program Services Segment

The segment results for Program Services for the three months ended March 31, 2026 and 2025 were as follows:

For the Three Months Ended March 31,

The segment results for Program Services for the three and six months ended June 30, 2026 and 2025 were as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

4 unchanged sentences

(1,349) (767) (2,861) (1,339)

Fee income (loss)

$ 2,393 $ (223) $ 4,001 $ 12

1 unchanged sentence

please see Key Financial & Operating Measures for further explanation.

Program Services segment results for the three months ended March 31, 2026 increased by $1.4 million, compared to the same period in 2025 due to increased premium volume produced by both new and existing client programs.

The general and administrative expenses increased due to higher compensation expenses subsequent to the Combination as well as higher legal and professional services expenses.

Program services revenue is presently highly concentrated due to capacity distribution agreements with two client programs representing 77.5% and 14.3% of total fee revenue earned in 2026, respectively.

These two client programs represented 43.6% and 3.1% of fee revenue for the first quarter of 2025, respectively.

The first program is a large, diversified capacity provider and our relationship with this client presently includes ten separate sub-programs (all of which produced revenue in 2026).

No individual sub-program is greater than 35% of total earned fee revenue for the three months ended March 31, 2026.

Program Services segment results for the three and six months ended June 30, 2026 increased by $2.6 million and $4.0 million, respectively, compared to the same periods in 2025 due to increased premium volume produced by both new and existing client programs.

The general and administrative expenses increased due to higher incentive compensation expenses as well as higher legal services expenses as a result of obtaining new business.

Program services revenue is presently highly concentrated due to capacity distribution agreements with two client programs representing 82.0% and 9.9% of total fee revenue earned in the six months ended June 30, 2026, respectively.

These two client programs represented 85.8% and 6.2% of fee revenue for the second quarter of 2026, respectively.

The first program is a large, diversified capacity provider and our relationship with this client presently includes twelve separate sub-programs (all of which produced revenue in 2026).

No individual sub-program is greater than 30% of total earned fee revenue for the three and six months ended June 30, 2026, respectively.

For the three months ended June 30, 2026, there were two new accounts that contributed $0.1 million of fee revenue earned.

For the six months ended June 30, 2026, there were three new accounts that contributed $0.2 million of fee revenue earned during 2026.

Legacy Reinsurance Segment

The following details underwriting results for the two components of our Legacy Reinsurance segment which is comprised of Diversified Reinsurance Legacy Business and the AmTrust Reinsurance Legacy Business.

The underwriting results for our Legacy Reinsurance segment for the three months ended March 31, 2026 were as follows:

For the Three Months Ended March 31, 2026

The following details underwriting results for the two components of our Legacy Reinsurance segment:

the Diversified Reinsurance Legacy Business and the AmTrust Reinsurance Legacy Business.

The underwriting results for our Legacy Reinsurance segment for the three and six months ended June 30, 2026 and 2025 were as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Gross premiums written

Net premiums written

Net premiums earned

Net loss and LAE

Commission and other acquisition expenses

General and administrative expenses

Underwriting loss

Diversified Reinsurance underwriting loss

$ (708) $ (1,523) $ (2,086) $ (1,523)

AmTrust Reinsurance underwriting (loss) income

(638) 7,356 (3,045) 7,356

Total Legacy Reinsurance underwriting results $ (1,346) $ 5,833 $ (5,131) $ 5,833

Diversified Reinsurance Legacy Business:

The underwriting results for Diversified Reinsurance legacy business for the three months ended March 31, 2026 were as follows:

For the Three Months Ended March 31, 2026

The underwriting results for Diversified Reinsurance legacy business for the three and six months ended June 30, 2026 and 2025 were as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Gross premiums written

$ 513 $ 1,381 $ 1,289 $ 1,381

Net premiums written

$ 514 $ 1,380 $ 1,289 $ 1,380

Net premiums earned

$ 571 $ 1,390 $ 1,438 $ 1,390

Net loss and LAE

363 (839) 665 (839)

Commission and other acquisition expenses

(452) (378) (1,179) (378)

General and administrative expenses

(1,190) (1,696) (3,010) (1,696)

Underwriting loss

The underwriting loss for the Diversified Reinsurance Legacy business during the three months ended March 31, 2026 was principally the result of the continuing run off of the Company's International operations.

Underwriting loss by business unit during the three months ended March 31, 2026 is detailed in the table below:

For the Three Months Ended March 31, 2026

$ (708) $ (1,523) $ (2,086) $ (1,523)

The underwriting loss for the Diversified Reinsurance Legacy business during the three and six months ended June 30, 2026 and 2025 was principally the result of the continuing run off of the Company's International operations.

Please refer to GLS Arbitration Proceedings as detailed in Note 11.

Commitments and Contingencies for further information on GLS results.

Underwriting loss by business unit is shown as follows for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

International $ (1,283) $ (1,183) $ (2,373) $ (1,183)

GLS 722 (321) 607 (321)

Other run-off lines (147) (19) (320) (19)

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Maiden LF and Maiden GF are presently the principal operating subsidiaries of the Company’s IIS platform;

therefore we will continue to experience limited premium written for 2026 in the Diversified Reinsurance Legacy Business.

Please refer to Note 14.

Assets Held for Sale of the Notes to Condensed Consolidated Financial Statements under Part I Item 1.

"Financial Information" for more details.

Net Loss and LAE — Net loss and LAE incurred in the three months ended March 31, 2026 were negative $0.3 million due to net favorable PPD of $0.3 million for the three months ended March 31, 2026 from International run-off business.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses incurred in the three months ended March 31, 2026 were $0.7 million.

This is driven by adjustments in premiums written and earned by Maiden LF and GF as they are not writing any new business with Maiden LF effectively placed in managed run-off operations.

General and Administrative Expenses — General and administrative expenses incurred in the three months ended March 31, 2026 were $1.3 million.

This included $0.1 million of amortization on the fair value adjustment of the discount on acquired net reserves for losses and LAE due to reverse acquisition accounting for the Combination.

therefore we will continue to experience limited premium written for 2026 in the Diversified Reinsurance Legacy Business, which will continue to decline during 2026.

Net Loss and LAE — Net loss and LAE for the three and six months ended June 30, 2026 improved underwriting results by $0.4 million and $0.7 million due to net favorable PPD of $0.4 million and $0.6 million mainly from favorable run-off on loss development in our International business.

This compared to $0.8 million of losses incurred for the three and six months ended June 30, 2025 which included net adverse PPD of $0.1 million primarily driven by adverse development in GLS business.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses incurred in the three and six months ended June 30, 2026 were $0.5 million and $1.2 million, respectively compared to $0.4 million for the same respective periods in 2025.

This is driven by adjustments in premiums written and earned by Maiden LF and GF as they are not writing any new business with Maiden LF placed in managed run-off operations.

General and Administrative Expenses — General and administrative expenses incurred in the three and six months ended June 30, 2026 were $1.2 million and $3.0 million, respectively, compared with $1.7 million for the same periods in 2025.

Total general and administrative expenses discussed above include certain non-recurring items as discussed further in Non-GAAP Measures .

We do not believe litigation costs related to the GLS arbitration, and restructuring and severance costs are representative of our future operating expenditures for Diversified Reinsurance legacy business.

For the three months ended June 30, 2026, we recognized net non-recurring income of $0.1 million, consisting of $0.7 million of restructuring and severance costs, offset by a $0.8 million of net recoupment of attorneys' fees related to the GLS arbitration, including a $1.0 million award of attorneys' fees.

This compares to net non-recurring expense of $0.6 million for the three months ended June 30, 2025, consisting primarily of severance costs.

For the six months ended June 30, 2026, we recognized net non-recurring expense of $0.1 million, consisting of $1.0 million of restructuring and severance costs, offset by $0.9 million of net recoupment of attorneys' fees related to the GLS arbitration, including a $1.0 million award of attorneys' fees.

This compares to net non-recurring expense of $0.6 million for the six months ended June 30, 2025, consisting primarily of severance costs.

Excluding these non-recurring items, total general and administrative expenses were $1.3 million and $2.9 million for the three and six months ended June 30, 2026, respectively, compared to $1.1 million for the same periods in 2025.

Total expenses for Diversified Legacy business included $0.1 million and $0.2 million of amortization for the three and six months ended June 30, 2026, respectively, compared to $41.0 thousand for the same periods in 2025 related to the fair value adjustment of the discount on acquired net reserves for losses and LAE resulting from reverse acquisition accounting for the Combination on May 27, 2025.

The recurring general and administrative segment expenses associated with IIS run-off business were $0.4 million and $1.2 million for the three and six months ended June 30, 2026, respectively, compared to $0.4 million for the same periods in 2025.

AmTrust Reinsurance Legacy Business:

The underwriting results for AmTrust Reinsurance Legacy business for the three months ended March 31, 2026 were as follows:

For the Three Months Ended March 31, 2026

The underwriting results for AmTrust Reinsurance Legacy business for the three and six months ended June 30, 2026 and 2025 were as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Gross premiums written

$ 922 $ (285) $ 2,801 $ (285)

Net premiums written

$ 922 $ (285) $ 2,801 $ (285)

Net premiums earned

$ 2,903 $ 1,032 $ 5,193 $ 1,032

Net loss and LAE

(1,878) 6,800 (4,435) 6,800

Commission and other acquisition expenses

(531) (16) (1,277) (16)

General and administrative expenses

Underwriting loss

The written premiums for the three months ended March 31, 2026 reflect premium adjustments in the AmTrust Quota Share for Specialty Risk and Extended Warranty business.

(1,132) (460) (2,526) (460)

Underwriting (loss) income

$ (638) $ 7,356 $ (3,045) $ 7,356

The written premiums for the three and six months ended June 30, 2026 reflect premium adjustments in the AmTrust Quota Share agreement for Specialty Risk and Extended Warranty business.

The AmTrust Quota Share and the European Hospital Liability Quota Share reinsurance agreements were terminated as of January 1, 2019 which has resulted in no new business written under these contracts.

The table below provides detail on net premiums earned in the three months ended March 31, 2026:

For the Three Months Ended March 31, 2026

Net Premiums Earned ($ in thousands)

Net premiums earned by type of business for the three and six months ended June 30, 2026 and 2025 are as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Net Premiums Earned

Small Commercial Business

$ (8) $ (7) $ (157) $ (7)

Specialty Program

Specialty Risk and Extended Warranty

2,909 1,039 5,350 1,039

Total AmTrust Reinsurance

Net Loss and LAE — Net loss and LAE expenses incurred for the three months ended March 31, 2026 were $2.6 million.

Net incurred losses for the three months ended March 31, 2026 were impacted by adverse PPD of $0.6 million.

The table below shows total PPD for the AmTrust Reinsurance Legacy business for the three months ended March 31, 2026:

For the Three Months Ended March 31, 2026

Prior Year Loss Development adverse (favorable) ($ in thousands)

$ 2,903 1,032 5,193 1,032

Net Loss and LAE — Net loss and LAE expenses incurred for the three and six months ended June 30, 2026 were $1.9 million and $4.4 million, respectively, compared to income from net losses and LAE of $6.8 million for the same periods in 2025.

Total PPD for AmTrust Reinsurance Legacy business for the three and six months ended June 30, 2026 is as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Prior Year Loss Development adverse (favorable)

AmTrust Quota Share $ 1,340 $ (4,200) $ 1,710 $ (4,200)

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Total AmTrust Prior Year Development $ 2,290 $ (7,913) $ 2,841 $ (7,913)

Net incurred losses for the three months ended March 31, 2026 included adverse PPD of $0.6 million.

Total PPD was due to an adjustment for greater than expected amount of earned exposure in 2025 that was reported in the three months ended March 31, 2026 on Specialty Risk and Extended Warranty business in the AmTrust Quota Share, and a reduction in recoveries anticipated under the LPT/ADC Agreement.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses incurred in the three months ended March 31, 2026 were $0.7 million.

General and Administrative Expenses — General and administrative expenses incurred in the three months ended March 31, 2026 were $1.4 million.

This included $0.7 million of amortization on the fair value adjustment of the discount on acquired net reserves for losses and LAE due to reverse acquisition accounting for the Combination.

Net adverse PPD of $2.3 million and $2.8 million was experienced during the three and six months ended June 30, 2026, respectively, compared to favorable PPD of $7.9 million for the three and six months ended June 30, 2025.

Net adverse PPD for the three and six months ended June 30, 2026 and net favorable PPD for the three and six months ended June 30, 2025 was almost entirely due to foreign currency fluctuations on loss reserves denominated in non-USD currencies.

The impact of adverse foreign exchange fluctuations was $2.3 million for the three and six months ended June 30, 2026.

Commission and Other Acquisition Expenses — Commission and other acquisition expenses incurred in the three and six months ended June 30, 2026 were $0.5 million and $1.3 million, respectively, compared to $16.0 thousand for the same periods in 2025.

General and Administrative Expenses — General and administrative expenses incurred in the three and six months ended June 30, 2026 were $1.1 million and $2.5 million compared to $0.5 million for the same periods in 2025.

This included $0.6 million and $1.3 million of amortization for the three and six months ended June 30, 2026, respectively, compared to $0.3 million for the same respective periods in 2025 on the fair value adjustment of the discount on acquired net reserves for losses and LAE due to reverse acquisition accounting for the Combination on May 27, 2025.

Liquidity and Capital Resources

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The jurisdictions in which our operating subsidiaries are licensed to write business impose regulations requiring companies to maintain or meet statutory solvency and liquidity requirements and also place restrictions on the declaration and payment of dividends and other distributions.

As of March 31, 2026, the Company had investable assets of $487.6 million compared to $506.1 million as of December 31, 2025.

As of June 30, 2026, the Company had investable assets of $465.2 million compared to $515.3 million as of December 31, 2025.

Investable assets include the combined total of our fixed maturity securities and other investments, cash and restricted cash (including cash equivalents), net loan receivable from a related party and funds withheld receivable.

Our investable assets decreased by $18.5 million during the three months ended March 31, 2026 due to the continued run-off of our reinsurance portfolio liabilities as claim payments were settled primarily from sales and maturities of AFS securities.

As discussed in "Overview" section, Maiden Reinsurance is regulated by the Vermont DFR.

We are actively engaged with the Vermont DFR regarding Maiden Reinsurance's longer term business plan, including its investment policy, changes to which require prior regulatory approval as stipulated by Vermont law or the Vermont DFR for active underwriting, capital management or other strategic initiatives, including our Combination with Kestrel.

Maiden Reinsurance has received all necessary approvals required to date by the Vermont DFR in respect of its business plan, including GLS activities and investment policy amendments made in 2025.

Our investable assets decreased by $50.1 million during the six months ended June 30, 2026 due to the continued run-off of our reinsurance portfolio liabilities as claim payments were settled primarily from sales and maturities of AFS fixed-income securities.

As discussed above under "Overview" , Maiden Reinsurance is regulated by the Vermont DFR.

We are actively engaged with the Vermont DFR regarding Maiden Reinsurance's longer term business plan, including its investment policy, changes to which require prior regulatory approval as stipulated under Vermont law or from the Vermont DFR for active underwriting, capital management or other strategic initiatives, including our Combination with Kestrel.

Maiden Reinsurance has received all necessary approvals required to date by the Vermont DFR with respect to its business plan, including GLS activities and investment policy amendments made in 2025.

Maiden Reinsurance's Investment Policy, as approved and as amended by the Vermont DFR in the second quarter of 2025, maintains our established investment management and governance practices.

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and 2) Maiden Reinsurance will make no new commitments for alternative assets, consistent with the practice it had already adopted ahead of this policy amendment.

Maiden Reinsurance expects to fulfill its remaining commitments to existing investments, which totals $23.1 million in unfunded commitments as of March 31, 2026.

Under its license as an affiliated reinsurer under the captive licensing laws in the State of Vermont, Maiden Reinsurance requires the approval of the Vermont DFR for the payment of any dividends.

Maiden Reinsurance expects to fulfill its remaining commitments to existing investments, which totaled $21.2 million in unfunded commitments as of June 30, 2026.

Under its license as an affiliated reinsurer under the captive licensing laws in the State of Vermont, Maiden Reinsurance requires the approval from the Vermont DFR for the payment of any dividends.

In May 2025, the Vermont DFR approved:

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To date, the Vermont DFR approved all dividend requests under the current dividend program.

During the three months ended March 31, 2026, Maiden Reinsurance paid dividends of $7.5 million to Maiden NA as approved by Vermont DFR on February 25, 2026.

During the three months ended March 31, 2026, Maiden NA did not pay any dividends to Maiden.

We may experience continued volatility in our results of operations which could negatively impact our financial condition and create a reduction in the amount of available distribution or dividend capacity from our regulated reinsurance subsidiaries, which would also reduce liquidity.

During the six months ended June 30, 2026, Maiden Reinsurance paid total dividends of $15.0 million to Maiden NA as approved by Vermont DFR in February 2026 and May 2026.

During the six months ended June 30, 2026, Maiden NA did not pay any dividends to Maiden.

We may experience continued volatility in our results of operations which could negatively impact our financial condition and reduce the amount of distributions or dividends available from our regulated reinsurance subsidiaries, which would also reduce liquidity.

Further, we and our insurance subsidiaries may need additional capital to maintain compliance with regulatory capital requirements and/or be required to post additional collateral under existing reinsurance arrangements, which could reduce our liquidity.

Operating, investing and financing cash flows

Our sources of funds may consist of fee revenue, premium receipts net of commissions and brokerage, investment income, net proceeds from capital raising activities, and proceeds from sales, maturities, pay downs and redemption of investments.

Cash is used primarily to pay loss and LAE, ceded reinsurance premium, general and administrative expenses, and interest expense, with the remainder in excess of our operating requirements made available to our investment managers for investment in accordance with our investment policy as well as for potential capital management such as repurchasing our shares.

During the three months ended March 31, 2026, we experienced negative operating cash flows as we continue to run off the Legacy Reinsurance segment reserves as shown in the cash flows table further below.

Our funding sources may include fee revenue, premium receipts net of commissions and brokerage, investment income, net proceeds from capital raising activities, and proceeds from sales, maturities, pay downs and redemption of investments.

Cash is used primarily to pay loss and LAE, ceded reinsurance premium, general and administrative expenses, and interest expense, with the remainder in excess of our operating requirements made available to our investment managers for investment in accordance with our investment policy and for potential capital management activities such as repurchasing our shares.

During the six months ended June 30, 2026, we experienced negative operating cash flows as we continue to run off the Legacy Reinsurance segment reserves as shown in the cash flows table further below.

We currently expect a trend of positive investing cash flows through 2026, and expect to use funds from our cash and investment portfolios, fee revenue premiums, investment income and proceeds from investment sales and redemptions to meet our expected claims payments and operational expenses.

Claim payments are principally from the run-off of existing reserves for loss and LAE.

Claim payments are principally funded by the run-off of existing reserves for loss and LAE.

A significant portion of those liabilities are collateralized, and claim payments will be funded by using this collateral which should provide sufficient funding to fulfill those obligations.

The Company’s management believes our current sources of liquidity are adequate to meet its cash requirements for the next twelve months as we generally expect negative operating cash flows to be sufficiently offset by positive investing cash flows.

The cash consideration and related significant professional expenses associated with completing the Combination has however utilized substantial amounts of Maiden's unrestricted liquidity.

The Company’s management believes current sources of liquidity are adequate to meet its cash requirements for the next twelve months as negative operating cash flows are expected to be sufficiently offset by positive investing cash flows.

However, the cash consideration and related significant professional expenses associated with completing the Combination utilized substantial amounts of our unrestricted liquidity.

While we continue to expect our cash flows to be sufficient to meet our cash requirements and to operate our business, as our reinsurance liabilities continue to run-off, our balance sheet increasingly consists of more illiquid investments which we are seeking to dispose of for more liquid assets.

Our inability to monetize these illiquid assets on a timely basis while fulfilling our ongoing obligations may restrain our liquidity further and we may need to consider alternative measures to ensure we continue to fulfill those obligations.

Further, while we are no longer making new alternative asset commitments, Maiden's historical asset management strategy which was part of the Combination can be impacted by both investment specific and broader financial market conditions and may not produce the expected liquidity and cash flows these investments are designed to achieve, or the timing thereof may also be impacted by those factors.

In addition, adverse outcomes or resolutions of ongoing legal disputes or proceedings, including

those matters referenced in " Notes to Condensed Consolidated Financial Statements (unaudited) Note 11.

Our inability to monetize these illiquid assets on a timely basis while fulfilling our ongoing obligations may further constrain our liquidity and we may need to consider alternative measures to ensure we continue fulfilling those obligations.

may not produce the expected liquidity and cash flows these investments are designed to achieve, and the timing of those cash flows may likewise be affected.

In addition, adverse outcomes or resolutions of ongoing legal disputes or proceedings, and the costs associated with those proceedings, including those matters referenced in " Notes to Condensed Consolidated Financial Statements (unaudited) Note 11.

Commitments, Contingencies and Guarantees " included under Part I Item 1.

" Financial Information " of this Form 10-Q, could further negatively impact liquidity and cash flows, and thus our ability to meet our cash requirements for the next twelve months.

At March 31, 2026, unrestricted cash, cash equivalents and fixed maturity investments were $21.1 million compared to $25.8 million held at December 31, 2025, a decrease of $4.7 million during the three months ended March 31, 2026.

At June 30, 2026, unrestricted cash, cash equivalents and fixed maturity investments were $23.3 million compared to $35.0 million held at December 31, 2025, a decrease of $11.7 million for the six months ended June 30, 2026.

Please see the related discussion on investing and financing cash flows below.

The table below summarizes our operating, investing and financing cash flows for the three months ended March 31, 2026 and 2025:

For the Three Months Ended March 31, 2026 2025

The table below summarizes our operating, investing and financing cash flows for the six months ended June 30, 2026 and 2025:

For the Six Months Ended June 30, 2026 2025

($ in thousands)

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Investing activities

39,154 102,041

Financing activities (486) (40,000)

Effect of exchange rate changes on foreign currency cash

Total increase (decrease) in cash, restricted cash and cash equivalents

Total decrease (increase) in cash, restricted cash and cash equivalents

$ (2,912) $ 41,964

Cash Flows used in Operating Activities

Cash flows used in operating activities for the three months ended March 31, 2026 was $15.1 million compared to cash flows used in operating activities of $0.9 million for the three months ended March 31, 2025.

The higher cash used in operating activities for the three months ended March 31, 2026 was primarily due to claim payments for ongoing runoff of reinsurance liabilities related to the Legacy Reinsurance segment loss reserves acquired on May 27, 2025.

Cash flows used in operating activities for the six months ended June 30, 2026 was $41.0 million compared to cash flows used in operating activities of $20.7 million for the six months ended June 30, 2025.

The cash used in operating activities was primarily due to claim payments for ongoing runoff of reinsurance liabilities acquired on May 27, 2025.

Cash Flows provided by Investing Activities

Cash provided by investing activities was $53.0 million for the three months ended March 31, 2026 compared to $0.0 million for the same period in 2025.

Cash flows provided by investing activities for the three months ended March 31, 2026 was primarily due to maturities of US Treasury bills held in our AFS investment portfolio and the partial repayment of the net loan receivable from related party.

For the three months ended March 31, 2026, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $45.0 million.

The size of the fixed income investment portfolio will diminish as claims payments continue to be made in the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share reinsurance agreements in our Legacy Reinsurance segment.

For the three months ended March 31, 2026, investing cash flows included purchases of alternative investments which exceeded proceeds from the sales and redemptions.

There were net purchases of $1.5 million for alternative investments during the three months ended March 31, 2026.

These net purchases were mainly due to pre-existing commitments for private equity fund investments for the three months ended March 31, 2026.

Cash provided by investing activities was $39.2 million for the six months ended June 30, 2026 compared to $102.0 million for the same period in 2025.

Cash flows provided by investing activities for the six months ended June 30, 2026 was primarily due to sales and maturities of securities held in our AFS investment portfolio in excess of AFS securities purchased.

Cash flows provided by investing activities for the six months ended June 30, 2025 was primarily due to $93.5 million of cash acquired from the purchase of Maiden business due to the Combination which closed on May 27, 2025.

For the six months ended June 30, 2026 and 2025, the proceeds from the sales, maturities and calls exceeded the purchases of fixed maturity securities by $22.3 million and $10.1 million, respectively.

The size of the fixed income investment portfolio continues to diminish as claims payments are made in the runoff of existing loss reserves for the terminated AmTrust Quota Share and the European Hospital Liability Quota Share reinsurance agreements in our Legacy Reinsurance segment.

For the six months ended June 30, 2026 and 2025, investing cash flows included purchases of alternative investments which exceeded proceeds from the sales and redemptions.

There were net purchases of $2.7 million and $1.6 million for alternative investments for the six months ended June 30, 2026 and 2025, respectively These net purchases were mainly due to pre-existing commitments for private equity fund investments for the six months ended June 30, 2026 and 2025.

Cash Flows used in Financing Activities

Cash flows used in financing activities were $0.5 million for the three months ended March 31, 2026 compared to $0.0 million for the same period in 2025.

This was due to the repurchase of common shares to settle tax payments upon the vesting of share-based compensation for certain employees.

No dividends on common shares were paid during the three months ended March 31, 2026 and 2025.

Cash flows used in financing activities were $0.5 million in the six months ended June 30, 2026 for the repurchase of common shares to settle tax payments upon the vesting of share-based compensation for certain employees.

Cash flows used in financing activities were $40.0 million for the six months ended June 30, 2025 due to cash dividends paid to Kestrel equityholders pursuant to the terms of the Combination which was completed on May 27, 2025.

There were no dividends on common shares paid during the six months ended June 30, 2026 and 2025, respectively.

Restrictions, Collateral and Specific Requirements

As previously noted, as a result of the completion of the Combination with Maiden on May 27, 2025, the Company has acquired significant investable assets and additional sources of investment income in addition to considerable loss reserves and unearned premiums under legacy reinsurance contracts as discussed in Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) "Note 4.

As a result of the Combination with Maiden on May 27, 2025, the Company has acquired significant investable assets and additional sources of investment income in addition to considerable loss reserves and unearned premiums under legacy reinsurance contracts as discussed in Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) "Note 4.

Investments ", "Note 9.

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Business Combination" included in this Form 10-Q.

Pursuant to the terms of the underlying reinsurance contracts associated with these liabilities, Maiden Reinsurance is required in certain instances to provide collateral in various forms as security against performance to satisfy those obligations.

Pursuant to terms of the underlying reinsurance contracts associated with these liabilities, Maiden Reinsurance is required in certain instances to provide collateral in various forms as security against performance to satisfy those obligations.

Those collateral obligations remained with Maiden Reinsurance after completion of the Combination.

The Company's restrictions, collateral and specific requirements are discussed in " Management's Discussion and Analysis of Financial Condition and Results of Operations " section.

Please also refer to " Part I, Item 1 - Notes to Condensed Consolidated Financial Statements (unaudited) included in this Form 10-Q for details of fair values for collateral requirements and restricted assets at March 31, 2026 particularly in these notes:

Note 4.(e) Restricted Cash, Cash Equivalents and Investments;

Related Party Transactions.

At March 31, 2026 and December 31, 2025, restricted cash and cash equivalents and fixed maturity investments used as collateral were $159.5 million and $163.9 million, respectively.

This collateral represents 88.3% and 86.4% of the fair value of total fixed maturity investments, cash, restricted cash and cash equivalents at March 31, 2026 and December 31, 2025, respectively.

At June 30, 2026 and December 31, 2025, restricted cash and cash equivalents and fixed maturity investments used as collateral were $147.6 million and $163.9 million, respectively.

This collateral represents 86.4% and 82.4% of the fair value of total fixed maturity investments, cash, restricted cash and cash equivalents at June 30, 2026 and December 31, 2025, respectively.

Cash and Investments

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Business Combination" included in this Form 10-Q.

As a result, the substantial majority of our current investments are held by Maiden Reinsurance, whose amended investment policy was approved by the Vermont DFR, as noted.

As of March 31, 2026, Maiden Reinsurance owned 22.1% of our total outstanding common shares which is eliminated for accounting and financial reporting purposes on our condensed consolidated financial statements.

Treasury shares include 2,237,534 common shares owned by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at March 31, 2026.

The market value of our common shares held by Maiden Reinsurance was $24.2 million at March 31, 2026.

As a result, the substantial majority of our current investments are held by Maiden Reinsurance, whose amended investment policy was approved by the Vermont DFR.

As of June 30, 2026, Maiden Reinsurance owned 22.2% of our total outstanding common shares which is eliminated for accounting and financial reporting purposes on our condensed consolidated financial statements.

Treasury shares include 2,237,534 common shares owned by Maiden Reinsurance which are not treated as outstanding common shares on the Condensed Consolidated Balance Sheet at June 30, 2026.

The market value of our common shares held by Maiden Reinsurance was $20.1 million at June 30, 2026.

The voting power of Maiden Reinsurance, with respect to its common shares, is no longer capped at 9.5% pursuant to a change in Maiden's bye-laws whereby Maiden's shareholders gave approval to remove the voting limitation on all shareholders at a Special Meeting that was held on April 29, 2025.

Accordingly, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at March 31, 2026.

Accordingly, our fixed income investment portfolio is invested in liquid, investment-grade fixed maturity securities which are all designated as AFS at June 30, 2026.

Further, prior to the Combination, Maiden Reinsurance’s investment policy had expanded to include a wide range of asset classes to enhance the income and total returns its investment portfolio produces, which had been approved by the Vermont DFR.

We categorize these investments as alternative investments which include " Other Investments ", "Equity Method Investments" and "Equity Securities" on our Condensed Consolidated Balance Sheets.

As of March 31, 2026 and December 31, 2025, our cash and investments consisted of:

March 31, 2026 December 31, 2025

As of June 30, 2026 and December 31, 2025, our cash and investments consisted of:

June 30, 2026 December 31, 2025

($ in thousands)

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Investments " included under Part I Item 1 " Financial Information" of this Form 10-Q for further discussion on our AFS fixed income securities.

The net purchases of other investments for the three months ended March 31, 2026 were related to pre-existing commitments for alternative investments made prior to the Combination.

Other than purchases for these pre-existing commitments, we have not made and will not be making new commitments to alternative investments in the foreseeable future.

The net purchases of other investments for the six months ended June 30, 2026 were related to pre-existing commitments for alternative investments made prior to the Combination.

Other than purchases for pre-existing commitments, we have not made and will not be making new commitments to alternative investments in the foreseeable future.

Please see the " Notes to Condensed Consolidated Financial Statements (unaudited) Note 11.

Commitments, Contingencies and Guarantees " included under Part I Item 1 " Financial Information" of this Form 10-Q for existing investment commitments on our alternative investments.

Under Maiden's approved investment policy, alternative investments could include, but are not limited to, privately held investments, private equities, private credit lending funds, fixed-income funds, equity funds, real estate (including joint ventures and limited partnerships) and other non-fixed-income investments.

For further details on our alternative investments, in addition to the discussion of the investments herein, please see " Notes to Condensed Consolidated Financial Statements (unaudited) Note 4(b).

Other Investments, Equity Securities and Equity Method Investments included under Part I Item 1 " Financial Information " of this Form 10-Q.

Commitments, Contingencies and Guarantees " included under Part I Item 1 " Financial Information" of this Form 10-Q for investment commitments on our alternative investments.

Under our approved investment policy, alternative investments could include, but are not limited to, privately held investments, private equities, private credit lending funds, fixed-income funds, equity funds, real estate (including joint ventures and limited partnerships) and other non-fixed-income investments.

For details on our alternative investments, in addition to the discussion of the investments herein, see " Notes to Condensed Consolidated Financial Statements (unaudited) Note 4(b).

Other Investments, Equity Securities and Equity Method Investments under Part I.

Item 1 " Financial Information " of this Form 10-Q.

Our investment performance is subject to a variety of risks, including risks related to general economic conditions, market volatility, interest rate fluctuations, foreign exchange risk, liquidity risk and credit and default risk.

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We may utilize and pay fees to various companies to provide investment advisory and/or management services related to these investments.

These fees, which would be predominantly based upon the amount of assets under management, would be included in net investment income.

These fees, which would be predominantly based upon the amount of assets under management, would be

included in net investment income.

In addition, costs associated with evaluating, analyzing and monitoring these investments may require additional expenditures than traditional marketable securities.

Cash & Cash Equivalents

At March 31, 2026, we consider the levels of cash and cash equivalents held to be within our targeted ranges.

At June 30, 2026, we consider the levels of cash and cash equivalents held to be within our targeted ranges.

As noted previously, the cash consideration and related significant professional expenses associated with completing the Combination has utilized substantial amounts of Maiden's unrestricted liquidity.

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Fixed Maturity Investments

The average yield and average duration of our fixed maturity investments, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at March 31, 2026 and December 31, 2025:

March 31, 2026 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Average yield (1)

The average yield and average duration of our fixed maturity investments, by asset class, and our cash and cash equivalents (restricted and unrestricted) are as follows at June 30, 2026 and December 31, 2025:

June 30, 2026 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Average yield (1)

Average duration (2)

($ in thousands)

treasury bills $ 35,027 $ — $ (1) $ 35,026 3.5 % 0.1

agency bonds – mortgage-backed

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($ in thousands)

treasury bonds

$ 43,662 $ 11 $ — $ 43,673 3.9 % 0.1

treasury bills $ 43,662 $ 11 $ — $ 43,673 3.9 % 0.1

agency bonds – mortgage-backed

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(2) Average duration in years.

During the three months ended March 31, 2026, the yield on the 10-year U.S.

During the six months ended June 30, 2026, the yield on the 10-year U.S.

Treasury bond increased by 26 basis points to 4.44%.

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Treasury rate is the key risk-free determinant in the fair value of many of the fixed maturity securities in our portfolio.

The increase in risk-free rates during the three months ended March 31, 2026 generated net unrealized losses of $0.6 million on our fixed maturity investment portfolio which reduced our book value per common share by $0.08 during the period.

Current outlooks for global monetary policy have become more uncertain in recent months, as a combination of significant changes in U.S.

fiscal and trade policy while simultaneously, geopolitical circumstances and rapid technological advancements have created increased economic uncertainty.

The impacts of these policies and conditions on both U.S.

and global economic outlooks and inflation appear to be causing central banks to adopt a generally more neutral monetary policy stance currently.

However, these conflicting economic indicators is also resulting in some uncertainty that this policy stance will be maintained.

Should interest rates fall, the impact on our investment portfolios, particularly for our fixed maturity assets, is to produce less income and thus weaken our financial condition.

The increase in risk-free rates during the six months ended June 30, 2026 generated net unrealized losses of $0.6 million on our fixed maturity investment portfolio which reduced our book value per common share by $0.07 during the period.

The six months ended June 30, 2026 was defined by elevated macroeconomic and geopolitical uncertainty and renewed concerns around inflation.

As a result, the current outlook for global monetary policy has shifted toward a pause or potential tightening, as central banks assess the potential of renewed inflation due to elevated volatility in energy markets from ongoing Middle East conflicts.

This potential change in global monetary policy has resulted in higher fixed-income yields across major developed markets.

Should interest rates fall however, the impact on our investment portfolios, particularly for our fixed maturity assets, would be to produce less income and thus weaken our financial condition.

Associated increases in the values of our fixed maturity investments may be more limited given that 19.0% of AFS fixed maturity investments that we hold that are floating rate securities.

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We also monitor the duration and structure of our AFS fixed maturity investment portfolio as discussed below.

As of March 31, 2026, the aggregate hypothetical change in fair value from an immediate 100 basis points increase in interest rates, assuming credit spreads remain constant, in our fixed maturity investments portfolio would decrease the fair value of that portfolio by $2.5 million.

As of June 30, 2026, the aggregate hypothetical change in fair value from an immediate 100 basis points increase in interest rates, assuming credit spreads remain constant, in our fixed maturity investments portfolio would decrease the fair value of that portfolio by $2.3 million.

Actual shifts in interest rates may not change by the same magnitude across the maturity spectrum or on an individual security and, as a result, the impact on the fair value of our fixed maturity securities may be materially different from the resulting change in value described above.

To limit our exposure to unexpected interest rate increases which would reduce the value of our fixed income securities and reduce our shareholders' equity, we attempt to maintain the duration of our fixed maturity investment portfolio combined with our cash and cash equivalents, both restricted and unrestricted, within a reasonable range of the duration of our loss reserves.

At March 31, 2026 and December 31, 2025, these respective durations in years were as follows:

March 31, 2026 December 31, 2025

At June 30, 2026 and December 31, 2025, these respective durations in years were as follows:

June 30, 2026 December 31, 2025

Fixed maturities and cash and cash equivalents

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Reserve for loss and LAE - net of LPT/ADC Agreement reserves 3.0 2.7

During the three months ended March 31, 2026, the weighted average duration of our fixed maturity investment portfolio increased by 0.2 years to 1.2 years while the duration for gross reserve for loss and LAE remained the same at 6.2 years.

During the six months ended June 30, 2026, the weighted average duration of our fixed maturity investment portfolio increased by 0.4 years to 1.4 years while the duration for gross reserve for loss and LAE increased by 0.2 years to 6.4 years.

The differential in duration between these assets and liabilities may fluctuate over time and in the case of fixed maturities, historically has been affected by factors such as market conditions, changes in asset mix and prepayment speeds in the case of both our U.S.

agency mortgage-backed securities ("Agency MBS") and commercial mortgage-backed securities held.

At March 31, 2026, the duration of our loss reserves net of the LPT/ADC Agreement was higher than the duration of our fixed maturity investment portfolio.

At June 30, 2026, the duration of our loss reserves net of the LPT/ADC Agreement was higher than the duration of our fixed maturity investment portfolio.

To limit our exposure to unexpected interest rate increases that could reduce the value of our fixed maturity securities and reduce our shareholders' equity, the Company holds floating rate securities whose fair values are less sensitive to interest rates.

At March 31, 2026, 40.2% (December 31, 2025:

At June 30, 2026, 39.3% (December 31, 2025:

50.4%) of our fixed maturity securities were comprised of floating rate securities which are detailed in the table below:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands) Fair Value % of Total Fair Value % of Total

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(1) Total fixed income investments at fair value include AFS fixed maturity securities, cash, restricted cash and cash equivalents, funds withheld receivable, and net loan receivable from related party.

At March 31, 2026 and December 31, 2025, 100.0% of the Company’s U.S.

At June 30, 2026 and December 31, 2025, 100.0% of the Company’s U.S.

agency bond holdings are mortgage-backed.

agency MBS comprise 17.7% of our fixed maturity investment portfolio at March 31, 2026.

agency MBS comprise 14.1% of our fixed maturity investment portfolio at June 30, 2026.

Given their relative size to our total investments, if faster prepayment patterns were to occur over an extended period of time, this could potentially limit the growth in our investment income in certain circumstances or reduce the total amount of investment income we earn.

The fair value of our U.S.

Agency MBS holdings at March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 December 31, 2025

Agency MBS holdings at June 30, 2026 and December 31, 2025 were as follows:

June 30, 2026 December 31, 2025

($ in thousands) Fair Value % of Total Fair Value % of Total

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Agency MBS $ 20,346 100.0 % $ 21,618 100.0 %

At March 31, 2026 and December 31, 2025, 100.0% of our fixed maturity investments consisted of investment grade securities.

At June 30, 2026 and December 31, 2025, 100.0% of our fixed maturity investments consisted of investment grade securities.

We define a security as being below investment grade if it has an S&P credit rating of BB+ or equivalent, or less.

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Credit ratings in the table below are assigned by S&P, or an equivalent rating agency.

The security holdings by sector and financial strength rating of our corporate bond holdings at March 31, 2026 and December 31, 2025 were as follows:

March 31, 2026 A+, A, A- BBB+, BBB, BBB- Fair Value % of Corporate bonds portfolio

The security holdings by sector and financial strength rating of our corporate bond holdings at June 30, 2026 and December 31, 2025 were as follows:

June 30, 2026 A+, A, A- BBB+, BBB, BBB- Fair Value % of Corporate bonds portfolio

Corporate bonds

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95.5 % 4.5 % $ 11,455 100.0 %

The table below includes the Company’s total corporate holdings at fair value and as a percentage of all AFS fixed maturity securities held as at March 31, 2026.

The table below includes the Company’s total corporate holdings at fair value and as a percentage of all AFS fixed maturity securities held as at June 30, 2026.

The Company's corporate holdings are 100.0% euro denominated, and 100.0% held in the Financial Institutions sector.

March 31, 2026 Fair Value % of Holdings Rating (1)

June 30, 2026 Fair Value % of Holdings Rating (1)

($ in thousands)

Chubb Ina Holdings Inc., 1.55%, Due 3/15/2028 $ 6,136 4.2 % A

Morgan Stanley, 1.875% Due 4/27/2027 2,270 1.6 % A+

American Tower Corp, 1.0%, Due 1/15/2032 501 0.4 % BBB+

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(1) Ratings as assigned by S&P, or equivalent

At March 31, 2026 and December 31, 2025, we held the following types of non-U.S.

At June 30, 2026 and December 31, 2025, we held the following types of non-U.S.

dollar denominated securities:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands) Fair Value % of Total Fair Value % of Total

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dollar denominated securities $ 89,252 100.0 % $ 104,374 100.0 %

At March 31, 2026 and December 31, 2025, 100.0% of non-U.S.

At June 30, 2026 and December 31, 2025, 100.0% of non-U.S.

dollar denominated securities were invested in euro denominated bonds.

At March 31, 2026, the non-U.S.

At June 30, 2026, the non-U.S.

government issuers all have a rating of A or higher by Fitch Ratings.

We do not employ any credit default protection against any of the fixed maturities held in non-U.S.

dollar denominated currencies at March 31, 2026.

dollar denominated currencies at June 30, 2026.

For our non-U.S.

dollar denominated corporate bonds, the following table summarizes the composition of the fair value of our fixed maturity investments at the dates indicated by ratings at March 31, 2026 and December 31, 2025, respectively:

March 31, 2026 December 31, 2025

dollar denominated corporate bonds, the following table summarizes the composition of the fair value of our fixed maturity investments at the dates indicated by ratings at June 30, 2026 and December 31, 2025:

June 30, 2026 December 31, 2025

($ in thousands) Fair Value % of Total Fair Value % of Total

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Private credit investments consist of loans and other debt securities of privately held entities or investment sponsors.

Our alternative investments as of March 31, 2026 and December 31, 2025 consisted of the following asset categories:

March 31, 2026 December 31, 2025

Our alternative investments as of June 30, 2026 and December 31, 2025 consisted of the following asset categories:

June 30, 2026 December 31, 2025

($ in thousands) Carrying Value % of Total Carrying Value % of Total

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Total alternative investments $ 218,441 100.0 % $ 218,638 100.0 %

Our allocation to alternative investments increased to 55.0% of our total cash and investments held as of March 31, 2026, compared to 53.5% as of December 31, 2025, partly due to additional funding of certain investments from pre-existing commitments made prior to the Combination.

Our allocation to alternative investments increased to 56.1% of our total cash and investments held as of June 30, 2026, compared to 52.4% as of December 31, 2025, partly due to additional funding of private equity funds from pre-existing commitments made prior to the Combination.

In addition to the categories described above, we also evaluate our alternative investments by the following asset classes:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

($ in thousands) Carrying Value % of Total Carrying Value % of Total

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• Private Equity – this asset class consists of both fund investments with leading private equity sponsors and direct equity investments in private companies, sometimes in conjunction with our private equity fund sponsors.

As of March 31, 2026, $4.3 million or 26.3% of investments in the private equity asset class consisted of investments in private equity funds and $12.0 million or 73.7% consisted of direct equity investments in private companies.

As of June 30, 2026, $4.4 million or 26.6% of investments in the private equity asset class consisted of investments in private equity funds and $12.1 million or 73.4% consisted of direct equity investments in private companies.

• Private Credit - this asset class consists of both fund investments with leading private credit sponsors and direct credit investments in private companies, sometimes in conjunction with our private credit fund sponsors.

Private credit investments in both funds and on a direct basis will typically be secured lending arrangements with non-rated entities, often with additional protective provisions to enhance the security and returns of these investments.

As of March 31, 2026, private credit asset class included $0.3 million or 100.0% in direct investments in private companies.

As of June 30, 2026, private credit asset class included $0.3 million or 100.0% in direct investments in private companies.

• Alternatives – this asset class consists of structured financing arrangements which typically have incentive features to enhance the Company’s returns.

As part of these arrangements, the Company requires collateral or bankruptcy-remote structures to protect its investments.

As of March 31, 2026, $81.9 million or 97.7% of investments

in the alternatives asset class were direct investments and $1.9 million or 2.3% of the alternatives asset class were invested in funds.

As of June 30, 2026, $79.0 million or 97.8% of investments in

the alternatives asset class were direct investments and $1.8 million or 2.2% of the alternatives asset class were invested in funds.

One investment in a collateralized direct lending entity of $53.1 million represents 65.8% of this asset class and is discussed further in "Note 4.

Investments" included in Part I Item 1.

"Financial Information" in this Quarterly Report on Form 10-Q for the three months ended March 31, 2026.

"Financial Information" in this Quarterly Report on Form 10-Q for the six months ended June 30, 2026.

• Venture Capital – this asset class consists of both fund investments with venture capital firms focused primarily on “insurtech” or “fintech” early-stage investments as well as direct investments in start-up companies in this sector, including equity investments in individual companies made in conjunction with our venture capital fund sponsors.

As of March 31, 2026, $16.9 million or 57.5% of investments in the venture capital asset class consisted of investments in funds and $12.5 million or 42.5% consisted of direct equity investments in start-up companies.

As of March 31, 2026, $14.3 million or 48.6% of our venture capital investments were invested in funds or companies that would be considered “insurtech” investments.

As of June 30, 2026, $17.3 million or 58.2% of investments in the venture capital asset class consisted of investments in funds and $12.5 million or 41.8% consisted of direct equity investments in start-up companies.

As of June 30, 2026, $14.4 million or 48.3% of our venture capital investments were invested in funds or companies that would be considered “insurtech” investments.

• Real Estate – this asset class consists of long-term equity investments in three real estate projects.

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One investment is a minority stake as a limited partner with a leading property developer with a highly successful track record, where the Company will earn returns from both operating income from rentals and future sales of properties.

As of March 31, 2026, the fair value of this project is $51.0 million and the Company expects investment returns to commence in earnest in 2026 and beyond.

As of June 30, 2026, the fair value of this project is $51.0 million and the Company expects investment returns to commence in earnest in 2026 and beyond.

The first properties developed with this project have been recently completed with occupancies now underway.

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To date, this development project has secured five properties in attractive locations and is currently in the zoning and planning stages.

As of March 31, 2026, the Company has $33.5 million invested in this project and has commenced earning limited amounts of fee income from this project.

As of June 30, 2026, the Company has $33.4 million invested in this project and has commenced earning limited amounts of fee income from this project.

As part of its investment, the Company has also provided certain loan guarantees which are discussed in more detail in Note 11.

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Finally, the Company has a minority equity stake in an iconic office building in a major city in the U.S., with an attractive and growing tenant roll.

As of March 31, 2026, the Company has $6.7 million invested in this project and to date has earned preferred returns and received certain distributions.

As of June 30, 2026, the Company has $6.7 million invested in this project and to date has earned preferred returns and received certain distributions.

In addition to preferred returns, the Company expects to receive future distributions of operating income from this investment.

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Investment Results

Our investment portfolio returns included in earnings increased to $3.9 million for the three months ended March 31, 2026 compared to $34.0 thousand for the same period in 2025.

This was largely due to the acquisition of Maiden's AFS fixed income and alternative investment portfolios in connection with the Combination on May 27, 2025.

The Company earned unrealized gains on the alternative investment portfolio, as well as interest income on the net loan receivable from related party and coupon income on the AFS fixed maturity investment portfolio.

The following table summarizes our investment results for the three months ended March 31, 2026 and 2025:

For the Three Months Ended March 31,

Our total investment returns included in earnings consists of net investment income, realized gains (losses), and interest in income (loss) of equity method investments.

The Company's total investment returns had a loss of $0.5 million and income of $3.4 million for the three and six months ended June 30, 2026, respectively, compared to income of $2.6 million for the same periods in 2025.

The Company's investment loss of $0.5 million for the three months ended June 30, 2026 was largely due to unrealized losses on alternative investments held in the energy sector whose valuation was revised downward as a result of volatility in commodities prices as geopolitical tensions and Middle East supply concerns eased in the second quarter of 2026.

The following table summarizes our investment results for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

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Fixed income investments (1)

$ 1,869 $ 1,295 $ 3,919 $ 1,295

Cash and restricted cash 268 166 718 200

Other investments, including equities (4)

331 84 492 84

Investment expenses (14) (3) (67) (3)

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Fixed income assets (1)

65 764 117 764

Other investments, including equities — — — —

Total net realized gains

65 764 117 764

Net unrealized gains:

Other investments (3,049) 294 (1,762) 294

Total net unrealized gains

Interest in loss of equity method investments:

Interest in loss of equity method investments

Total net unrealized losses

(3,049) 294 (1,762) 294

Interest in income of equity method investments:

Interest in income of equity method investments

Total investment return included in earnings (A)

$ (520) $ 2,600 $ 3,426 $ 2,634

Other comprehensive income:

Unrealized losses on AFS fixed maturity securities (B)

Unrealized gains on AFS fixed maturity securities (B)

$ 79 $ 485 $ (541) $ 485

Total investment return = (A) + (B) $ (441) $ 3,085 $ 2,885 $ 3,119

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GAAP consolidated financial statements.

The following table details total investment returns for our fixed income investments for the three months ended March 31, 2026 and 2025:

Gross and net investment returns for other investments, including equities, only include the post-Combination period from May 27, 2025 to June 30, 2025.

The following table details total investment returns for our fixed income investments for the three and six months ended June 30, 2026 and 2025:

Fixed Income Investments (1)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

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Net realized gains

65 764 117 764

Change in AOCI (2)

79 485 (541) 485

Gross investment returns $ 2,281 $ 2,710 $ 4,213 $ 2,744

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Net Investment Returns 0.9 % 1.4 % 1.5 % 1.4 %

Our net investment returns slightly decreased to 0.7% for the three months ended March 31, 2026, compared to 0.9% for the same period in 2025.

Our portfolio includes floating rate investments that comprised 40.2% of our fixed income investments at March 31, 2026.

The net loan receivable from related party had an average balance of $82.7 million at March 31, 2026 with an average yield of 5.5% for the three months ended March 31, 2026.

Fixed income investments include AFS securities, cash, restricted cash, funds withheld receivable, and net loan receivable from related party.

Change in accumulated other comprehensive income ("AOCI") excludes unrealized foreign exchange gains and losses.

Average invested assets for the three and six months ended June 30, 2025 are significantly lower than the current period due to the inclusion of the AFS portfolio, funds withheld receivable and net loan receivable only in the post-Combination period from May 27, 2025 to June 30, 2025.

Our net investment returns on fixed income investments decreased to 0.9% and increased to 1.5% for the three and six months ended June 30, 2026, respectively, compared to 1.4% for the same periods in 2025.

Our average invested assets for the three and six months ended June 30, 2025 was impacted by the acquisition of the legacy investment portfolio on May 27, 2025.

Our portfolio includes floating rate investments that comprised 39.3% of our fixed income investments at June 30, 2026.

Net interest income on our loan receivable from related party was $1.0 million and $2.2 million for the three and six months ended June 30, 2026, respectively, compared to $0.7 million for the same periods in 2025.

The net loan carried a weighted average interest rate of 5.8% on an average balance of $107.5 million for the three and six months ended June 30, 2025, respectively.

Please refer to " Notes to Condensed Consolidated Financial Statements - Note 4.

Investments " included under Part I, Item 1 " Financial Information" of this Quarterly Report on Form 10-Q for further detail on investment returns from fixed income investments held by the Company at March 31, 2026 and 2025.

The following table details total investment returns for our alternative investments for the three months ended March 31, 2026:

The following table details total investment returns for our alternative investments for the three and six months ended June 30, 2026 and 2025:

Alternative Investments (1)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Gross investment income $ 341 $ 84 $ 501 $ 84

Net unrealized gains

Net unrealized losses

(3,049) 294 (1,762) 294

Gross investment returns $ (2,708) $ 378 $ (1,261) $ 378

Average invested assets, at fair value (2)

$ 219,701 $ 103,235 $ 218,540 $ 103,235

Gross Investment Returns (3)

(1.2) % 0.4 % (0.6) % 0.4 %

Investment expenses $ (20) $ — $ (4) $ —

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Net Investment Returns (3)

Fixed income investments includes AFS securities as well as cash, restricted cash, funds withheld receivable, and net loan receivable from related party.

(1.2) % 0.4 % (0.6) % 0.4 %

Alternative investments includes other investments, equity securities, and equity method investments.

Change in accumulated other comprehensive income ("AOCI") excludes unrealized foreign exchange gains and losses.

Average invested assets is the average of the amounts disclosed in our quarterly U.S.

GAAP consolidated financial statements.

The following table details total investment returns for alternative investments by asset class for the three months ended March 31, 2026:

March 31, 2026 Private Equity Private Credit Alternative Assets Venture Capital Real Estate Total

Average invested assets for the three and six months ended June 30, 2025 are significantly lower than the current period due to the inclusion of the alternative portfolio only in the post-Combination period from May 27, 2025 to June 30, 2025.

Gross and net investment returns for alternative investments for the three and six months ended June 30, 2025 only include the post-Combination period from May 27, 2025 to June 30, 2025.

The following table details total investment returns for alternative investments by asset class for the six months ended June 30, 2026:

June 30, 2026 Private Equity Private Credit Alternative Assets Venture Capital Real Estate Total

($ in thousands)

Gross investment income $ — $ — $ — $ — $ 501 $ 501

Net realized and unrealized gains

Net realized and unrealized losses

(2) 115 (2,525) 412 238 (1,762)

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Gross Investment Returns — % 46.1 % (3.1) % 1.4 % 0.8 % (0.6) %

The following table details total investment returns for alternative investments by asset class for the six months ended June 30, 2025:

June 30, 2025 Private Equity Private Credit Alternative Assets Venture Capital Real Estate Total

($ in thousands)

Gross investment income $ — $ — $ — $ — $ 84 $ 84

Net realized and unrealized gains (losses) 121 — 147 26 — 294

Total Investment Return $ 121 $ — $ 147 $ 26 $ 84 $ 378

Average Investments $ 7,471 $ 833 $ 39,340 $ 13,213 $ 42,379 $ 103,235

Gross Investment Returns 1.6 % — % 0.4 % 0.2 % 0.2 % 0.4 %

Other Balance Sheet Changes

The following table summarizes other material balance sheet changes at March 31, 2026 compared to December 31, 2025:

($ in thousands) March 31, 2026 December 31, 2025 Change in $ Change %

The following table summarizes other material balance sheet changes at June 30, 2026 compared to December 31, 2025:

($ in thousands) June 30, 2026 December 31, 2025 Change in $ Change %

Reinsurance balances receivable, net

$ 5,590 $ 724 $ 4,866 672.1 %

Reinsurance recoverable on unpaid losses

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6,417 10,956 (4,539) (41.4) %

Other assets 24,116 18,292 5,824 31.8 %

Reserve for loss and LAE

2 unchanged sentences

61,419 52,694 8,725 16.6 %

During the three months ended March 31, 2026, the Company's reinsurance recoverable on unpaid losses decreased by $24.8 million or 5.4% primarily due to the receipt of loss recoveries from Cavello under the LPT/ADC Agreement.

Net loan receivable from related party decreased by $8.3 million or 9.5% since regular repayment of the loan commenced on January 1, 2025 which continues to reduce the loan receivable on a quarterly basis.

The Company's reserve for loss and LAE decreased by $43.8 million or 6.9% primarily due to continuing settlement of loss reserves liabilities primarily for the legacy AmTrust Reinsurance contracts.

During the six months ended June 30, 2026, the Company's reinsurance recoverable on unpaid losses decreased by $49.1 million or 10.6% primarily due to the receipt of loss recoveries from Cavello under the LPT/ADC Agreement.

Net loan receivable from related party decreased by $17.4 million or 20.1% as scheduled payments, which commenced on January 1, 2025, continue be made on a quarterly basis.

The Company's reserve for loss and LAE decreased by $82.8 million or 13.0% primarily due to continuing settlement of loss reserves liabilities primarily for the legacy AmTrust Reinsuranc e contracts.

The funds withheld receivable decreased by 41.4% due to settlement of amounts due under International contracts.

Accrued expenses and other liabilities increased by $5.4 million or 10.4% for the three months ended March 31, 2026 primarily due to an increase in reinsurance losses payable under the legacy AmTrust reinsurance agreements.

At June 30, 2026, the Company's reinsurance receivables increased by $4.9 million, as the Company recorded $5.3 million under reinsurance balances receivable as a result of the GLS Arbitration Final Award.

An offsetting amount was also accrued in the Company’s underwriting-related derivative liability under accrued expenses and other liabilities related to this transaction.

Please see Note 11.

Commitments and Contingencies for further information.

Accrued expenses and other liabilities increased by $8.7 million or 16.6% for the six months ended June 30, 2026 primarily due to the increase in the underwriting-related derivative liability, along with an increase in reinsurance losses payable under the legacy AmTrust reinsurance agreements.

NOL Carryforwards

We believe the Combination and our ability to increase pre-tax income will create opportunities to utilize Maiden's NOL carryforwards that totaled $466.7 million at March 31, 2026.

We believe the Combination and our ability to increase pre-tax income will create opportunities to utilize the Company's total NOL carryforwards of $471.6 million at June 30, 2026.

Approximately $383.4 million of these NOL carryforwards expire in various years beginning in 2029.

As of March 31, 2026, $79.1 million or 16.9% of Maiden's NOL carryforwards have no expiry date under the relevant U.S.

The NOL carryforwards combined with additional net deferred tax assets ("DTA") primarily related to Maiden's insurance liabilities result in net U.S.

DTA (before valuation allowance) of $138.7 million or $17.73 per common share at March 31, 2026.

As of June 30, 2026, Maiden had NOL carryforwards with no expiry date of $79.1 million or 16.8% of our total NOL carryforwards under the relevant U.S.

NOL carryforwards combined with additional net deferred tax assets ("DTA") primarily related to Maiden's insurance liabilities result in net U.S.

DTA (before valuation allowance) of $139.9 million or $17.88 per common share at June 30, 2026.

Maiden's net U.S.

DTA of $138.7 million is not presently recognized on the Company's condensed consolidated balance sheet as a full valuation allowance is carried against it.

Kestrel LLC has NOL carryforwards of $9.6 million with no expiry date.

Additionally, Kestrel LLC has net DTA of $11.0 million or $1.40 per common share at March 31, 2026 , which mainly relates to tax basis intangibles, which is not presently recognized on the Company's Condensed Consolidated Balance Sheet as a full valuation allowance is carried against it.

DTA of $139.9 million is not currently recognized on the Company's condensed consolidated balance sheet as a full valuation allowance is carried against it.

At June 30, 2026, Kestrel LLC had NOL carryforwards of $9.1 million with no expiry date.

Additionally, Kestrel LLC has net DTA of $11.0 million or $1.40 per common share at June 30, 2026 , which mainly relates to tax basis intangibles and not presently recognized on our Condensed Consolidated Balance Sheet as a full valuation allowance is carried against it.

At this time, the Company believes it is necessary to maintain a full valuation allowance against both net DTA's as more evidence is needed regarding the utilization of these losses.

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Capital Resources

During the three months ended March 31, 2026, book value per common share decreased to $15.52 and diluted book value per common share decreased to $14.32, compared to $16.57 and $16.28 at December 31, 2025, respectively.

During the six months ended June 30, 2026, book value per common share decreased to $14.57 and diluted book value per common share decreased to $13.31, compared to $16.57 and $16.28 at December 31, 2025, respectively.

Total capital resources decreased by $14.3 million compared to December 31, 2025 due to the following items:

• retained earnings decreased by $7.4 million due to the net loss reported for the three months ended March 31, 2026;

• retained earnings decreased by $15.5 million due to the net loss reported for the six months ended June 30, 2026;

• AOCI decreased by $0.9 million driven by:

(1) net unrealized losses of $0.6 million on our AFS investment portfolio due to market price movements in the three months ended March 31, 2026, partly offset by:

(2) an increase in foreign currency translation adjustment of $0.2 million in the three months ended March 31, 2026 due to appreciation of the U.S.

dollar on the re-measurement of net liabilities denominated in British pound and euro;

• treasury shares increased by $0.5 million due to common shares repurchases of $0.5 million which represent tax withholding in respect of tax obligations on the vesting of non-performance-based restricted shares;

partly offset by:

• additional paid-in capital increased by $1.4 million due to stock based compensation expense incurred during the three months ended March 31, 2026;

The following table shows the movement in our capital resources at March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025 Change in $

(1) net unrealized losses of $0.5 million on our AFS investment portfolio due to market price movements in the six months ended June 30, 2026, and (2) a decrease in foreign currency translation adjustment of $0.4 million in the six months ended June 30, 2026 due to appreciation of the U.S.

dollar on the re-measurement of net assets denominated in British pound and euro;

• treasury shares increased by $0.5 million due to common shares repurchases for withholding in respect of tax obligations on the vesting of non-performance-based restricted shares;

• additional paid-in capital increased by $2.6 million due to stock based compensation expense incurred during the six months ended June 30, 2026.

The following table shows the movement in our capital resources at June 30, 2026 and December 31, 2025:

June 30, 2026 December 31, 2025 Change in $

($ in thousands)

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Additional paid-in capital 180,153 177,534 2,619

Accumulated other comprehensive income

Accumulated other comprehensive (loss) income

(29) 916 (945)

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" Financial Information" of this Quarterly Report on Form 10-Q for a discussion of equity instruments issued by the Company.

Book value and diluted book value per common share at March 31, 2026 and December 31, 2025 were as follows:

($ in thousands except share and per share data) March 31, 2026 December 31, 2025

Book value and diluted book value per common share at June 30, 2026 and December 31, 2025 were as follows:

($ in thousands except share and per share data) June 30, 2026 December 31, 2025

Ending common shareholders’ equity

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Diluted book value per common share

At March 31, 2026, Kestrel Group had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") by its now wholly owned subsidiary Maiden and outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") by its now wholly owned subsidiary, Maiden NA, collectively referred to as the Company's outstanding senior notes ("Senior Notes").

At June 30, 2026, Kestrel Group had outstanding publicly-traded senior notes which were issued in 2016 ("2016 Senior Notes") by its now wholly owned subsidiary Maiden and outstanding publicly-traded senior notes which were issued in 2013 ("2013 Senior Notes") by its now wholly owned subsidiary, Maiden NA, collectively referred to as the Company's outstanding senior notes ("Senior Notes").

The Senior Notes are unsecured and unsubordinated obligations of the Company.

On May 27, 2025 in connection with the Combination, (i) Maiden, as issuer, the Company, as guarantor, and Wilmington Trust, National Association, as trustee, entered into a second supplemental indenture (the “Second Supplemental Indenture”) to that certain indenture dated as of June 14, 2016, providing that the Company will fully and unconditionally guarantee Maiden’s 6.625% Senior Notes due 2046 and (ii) Maiden NA, as issuer, the Company, as guarantor, and Wilmington Trust Company, as trustee, entered into a fourth supplemental indenture (together with the Second Supplemental Indenture, the “Supplemental Indentures”) to that certain indenture dated as of June 24, 2011, providing that the Company will fully and unconditionally guarantee MHNA’s 7.75% Senior Notes due 2043.

The Company did not enter into any short-term borrowing arrangements during the three months ended March 31, 2026.

The Company did not enter into any short-term borrowing arrangements during the six months ended June 30, 2026.

Please refer to " Notes to Condensed Consolidated Financial Statements (unaudited) Note 7.

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In 2025, the Vermont DFR approved an annual dividend program from Maiden Reinsurance to Maiden NA, but required prior approval of quarterly dividends before payment.

To date the Vermont DFR has approved all dividend requests under this program.

Subsequent to these approvals, plus the approval for the $40.0 million extraordinary dividend to provide for consideration to the Kestrel shareholders pursuant to the terms of the Combination Agreement, Maiden Reinsurance paid total dividends of $145.0 million to Maiden NA as of March 31, 2026.

The Vermont DFR has approved all dividend requests under this program.

The summarized financial information below has been presented on a combined basis for the issuer Maiden NA and the guarantor Maiden, excluding all other subsidiaries.

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Intercompany balances with subsidiaries that are not issuers or guarantors and any related party transactions were separately disclosed below and are not included in the total assets and total liabilities presented for Maiden NA and Maiden.

The net loss for Maiden was due to interest and amortization expenses on the Senior Notes as well as general and administrative expenses and net loss in Maiden NA reflects general operating expenses for the period.

Summarized financial information of Maiden NA and Maiden as of March 31, 2026 and for the three months ended March 31, 2026 were as follows:

The net loss for Maiden and Maiden NA was largely due to interest and amortization expenses on the Senior Notes as well as general and administrative expenses for the respective periods.

Summarized financial information of Maiden NA and Maiden as of June 30, 2026 and for the three and six months ended June 30, 2026 were as follows:

Maiden NA Maiden

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Related party loan payable (not included in total liabilities above) — 340,947

Total revenue for the quarter-to-date period 1 —

Net loss for the quarter-to-date period

(1,715) (7,394)

Total revenue for year-to-date period 4 —

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With respect to the related party loan payable for Maiden above, under the conditions stipulated in the Vermont DFR approval for the Combination, Maiden Reinsurance (as the lender) is no longer permitted to include the corresponding related party loan receivable from Maiden (and related accrued interest) as an admitted asset for statutory capital and reporting purposes.

As a result, Maiden Reinsurance's ratio of risk-based capital to total adjusted capital was significantly reduced, which remains sufficient to not only support the dividends related to the Combination and recurring annual dividends (which require prior approval by the Vermont DFR) but our ability to selectively underwrite business in support of our Program Services segment in the future.

The ratio of Debt to Total Capital Resources at March 31, 2026 and December 31, 2025 was computed as follows:

($ in thousands) March 31, 2026 December 31, 2025

As a result, Maiden Reinsurance's ratio of risk-based capital to total adjusted capital was significantly reduced, which remains sufficient to not only support the dividends related to the Combination and recurring quarterly dividends (which require prior approval by the Vermont DFR on a quarterly basis) but our ability to selectively underwrite business in support of our Program Services segment in the future.

The ratio of Debt to Total Capital Resources at June 30, 2026 and December 31, 2025 was computed as follows:

($ in thousands) June 30, 2026 December 31, 2025

Senior notes - principal amount

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The Company is not bound to such guarantees without its express authorization.

As discussed above, at March 31, 2026, guarantees of $72.2 million have been provided to lenders by Maiden Reinsurance on behalf of the real estate joint venture, however, the likelihood of Maiden Reinsurance incurring any losses pertaining to project level financing guarantees was determined to be remote.

As discussed above, at June 30, 2026, guarantees of $70.7 million have been provided to lenders by Maiden Reinsurance on behalf of the real estate joint venture, however, the likelihood of Maiden Reinsurance incurring any losses pertaining to project level financing guarantees was determined to be remote.

Therefore, no liability has been accrued under ASC 450-20.

Non-GAAP Measures

Please refer to our Key Financial Measures presented in the " Overview to Critical Accounting Policies" section for financial measures in accordance with GAAP in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations and Comprehensive Loss.

In addition, management uses certain non-GAAP financial measures to evaluate the Company's financial performance and the overall growth in value generated for the Company’s common shareholders.

These non-GAAP financial measures should not be viewed as a substitute for those determined in accordance with U.S.

Non-GAAP operating earnings (loss) and non-GAAP diluted operating earnings (loss) per common share :

Management believes that the use of non-GAAP operating earnings and non-GAAP diluted operating earnings per common share enables investors and other users of the Company’s financial information to analyze its performance in a manner similar to how management analyzes performance.

Management also believes that these measures generally follow industry practice therefore allowing the users of financial information to compare the Company’s performance with its industry peer group, and that the equity analysts and certain rating agencies which follow the Company, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons.

Non-GAAP operating earnings should not be viewed as a substitute for U.S.

GAAP net income.

Non-GAAP operating earnings (loss) is an internal performance measure used by management as these measures focus on the underlying fundamentals of the Company's operations by excluding, on a recurring basis:

(1) net realized and unrealized investment gains (losses);

Non-GAAP operating loss was $6.7 million for the three months ended June 30, 2026 compared to non-GAAP earnings of $5.4 million for the same period in 2025.

The non-GAAP operating loss increased by $12.1 million for the three months ended June 30, 2026 compared to the same period in 2025 primarily due to higher recurring operating expenses, higher adverse PPD in the Legacy Reinsurance segment, and higher interest and amortization expense on the Senior Notes, partly offset by improved Program Services results.

Maiden's results for the three months ended June 30, 2025 only included operations subsequent to May 27, 2025 therefore the year-over-year comparisons are generally not directly comparable.

Non-GAAP operating loss was $17.4 million for the six months ended June 30, 2026, compared to a non-GAAP operating earnings of $5.0 million for the six months ended June 30, 2025.

The non-GAAP operating loss increased by $22.4 million for the six months ended June 30, 2026 primarily due to higher recurring operating expenses, higher adverse PPD in the Legacy Reinsurance segment, and higher interest and amortization expense on the Senior Notes, partly offset by improved Program Services results.

Maiden's results for the six months ended June 30, 2025 only included operations subsequent to May 27, 2025 therefore the year-over-year comparisons are generally not directly comparable.

Non-GAAP Operating ROACE for the three and six months ended June 30, 2026 and 2025 was as follows:

For the Three Months Ended June 30, For the Six Months Ended June 30,

($ in thousands) 2026 2025 2026 2025

Non-GAAP operating (loss) earnings

$ (6,740) $ 5,394 $ (17,352) $ 5,000

Opening adjusted shareholders’ equity 121,437 4,227 128,284 4,606

Ending adjusted shareholders’ equity 113,960 150,085 113,960 150,085

Average adjusted shareholders’ equity 117,699 77,156 121,122 77,346

Non-GAAP Operating ROACE

(23.0) % 28.0 % (28.9) % 13.0 %

The calculation and reconciliation to nearest GAAP measure of relevant non-GAAP measures used by management are:

For the Three Months Ended June 30, 2026 2025

($ in thousands except per share data)

Net (loss) income attributable to Kestrel common shareholders

$ (8,082) $ 69,927

Add (subtract):

Net realized and unrealized investment losses (gains)

2,984 (1,058)

Amortization of intangible assets 833 426

Foreign exchange and other (gains) losses

(3) interest in income (loss) of equity method investments;

and (4) amortization of intangible assets.

It also excludes on a non-recurring basis:

(1) loss from discontinued operations, net of income tax and;

(2) restructuring and severance costs;

and (3) costs incurred due to the Combination on May 27, 2025.

We excluded net realized and unrealized investment gains (losses), interest in income (loss) of equity method investments and foreign exchange and other gains (losses) as we believe these are influenced by market opportunities and other factors.

We do not believe amortization of intangible assets, the net loss from our discontinued operations;

(2,278) 5,102

Interest in income of equity method investments

Change in bargain purchase gain — (73,590)

Litigation costs related to GLS related Arbitration (847) 5

Restructuring and severance costs 734 1,779

and costs incurred due to the Combination on May 27, 2025 are representative of our ongoing and future business.

Non-GAAP operating loss was $10.4 million for the three months ended March 31, 2026 compared to a loss of $0.4 million for the same period in 2025.

The non-GAAP operating loss increased by $10.0 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to higher corporate expenses of $6.9 million, an underwriting loss of $3.3 million in the Legacy Reinsurance segment and net interest and amortization expense on the Senior Notes of $3.9 million, partly offset by higher net investment income which increased by $2.5 million and Program Services segment net fee income which increased by $1.4 million.

The calculation, reconciliation to nearest GAAP measure and discussion of relevant non-GAAP measures used by management are as follows:

For the Three Months Ended March 31, 2026 2025

($ in thousands except per share data)

Net loss attributable to Kestrel common shareholders

Costs incurred due to the Combination (74) 124

Change in fair value of earn out consideration — 2,679

Non-GAAP operating (loss) earnings

$ (6,740) $ 5,394

Diluted (loss) earnings per share attributable to common shareholders

$ (1.03) $ 15.05

Add (subtract):

Net realized and unrealized investment gains

Net realized and unrealized investment losses (gains) 0.38 (0.23)

Amortization of intangible assets 0.11 0.09

Foreign exchange and other gains

Interest in loss of equity method investments

Net loss from discontinued operations

Foreign exchange and other (gains) losses (0.29) 1.10

Change in bargain purchase gain — (15.88)

Litigation costs related to GLS related Arbitration (0.11) —

Restructuring and severance costs 0.09 0.38

Costs incurred due to the Combination (0.01) 0.03

Non-GAAP operating loss

Change in fair value of earn out consideration — 0.58

Non-GAAP diluted operating (loss) earnings per share attributable to common shareholders

$ (0.86) $ 1.12

Diluted loss per share attributable to common shareholders

For the Six Months Ended June 30, 2026 2025

($ in thousands except per share data)

Net (loss) income attributable to Kestrel common shareholders

$ (15,513) $ 69,533

Add (subtract):

Net realized and unrealized investment gains (0.17) —

Net realized and unrealized investment losses (gains)

1,645 (1,058)

Amortization of intangible assets 1,671 426

Foreign exchange and other gains (0.29) —

Net loss from discontinued operations

Foreign exchange and other (gains) losses

(4,498) 5,102

Interest in income of equity method investments

Change in bargain purchase gain — (73,590)

Litigation costs related to GLS related Arbitration (884) 5

Restructuring and severance costs 1,007 1,779

Costs incurred due to the Combination (771) 124

Non-GAAP diluted operating loss per share attributable to common shareholders

Change in fair value of earn out consideration — 2,679

Non-GAAP operating (loss) earnings

$ (17,352) $ 5,000

Non-GAAP Operating Return on Average Common Equity ("Non-GAAP Operating ROACE"):

Management uses non-GAAP operating return on average common shareholders' equity as a measure of profitability that focuses on the return to common shareholders.

It is calculated using non-GAAP operating income or loss available to common shareholders (as defined above) divided by average common shareholders' equity.

Non-GAAP Operating ROACE for the three months ended March 31, 2026 and 2025 was as follows:

For the Three Months Ended March 31,

($ in thousands) 2026 2025

Non-GAAP operating loss

Diluted (loss) earnings per share attributable to common shareholders

$ (1.99) $ 18.80

Opening adjusted shareholders’ equity 128,284 4,606

Ending adjusted shareholders’ equity 121,437 4,227

Average adjusted shareholders’ equity 124,861 4,417

Non-GAAP Operating ROACE

Add (subtract):

Net realized and unrealized investment losses (gains) 0.21 (0.29)

Amortization of intangible assets 0.21 0.12

Foreign exchange and other (gains) losses (0.58) 1.38

Change in bargain purchase gain — (19.93)

Litigation costs related to GLS related Arbitration (0.11) —

Restructuring and severance costs 0.13 0.48

Costs incurred due to the Combination (0.10) 0.03

Change in fair value of earn out consideration — 0.73

Non-GAAP diluted operating (loss) earnings per share attributable to common shareholders

$ (2.23) $ 1.32

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To the extent that these exposures are not fully hedged or the hedges are ineffective, our results of operations or equity may be adversely affected.

At March 31, 2026, no such hedges or hedging strategies were in force or had been entered into.

At June 30, 2026, no such hedges or hedging strategies were in force or had been entered into.

We measure monetary assets and liabilities denominated in foreign currencies at period end exchange rates, with the resulting foreign exchange gains and losses recognized in the unaudited Condensed Consolidated Statements of Operations.

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The effect of the translation adjustments for foreign operations is included in AOCI.

Net foreign exchange gains of $2.0 million were generated during the three months ended March 31, 2026, compared to net foreign exchange losses of $0.0 million for the three months ended March 31, 2025.

For the three months ended March 31, 2026, net foreign exchange gains of $2.0 million were attributable to appreciation of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in the British pound and euro.

The foreign exchange gains for the three months ended March 31, 2026 were primarily unrealized and resulted from the effects of revaluation of our net insurance liabilities that are required to be remeasured in foreign currencies at each balance sheet date.

At March 31, 2026, the increase in foreign currency translation adjustments of $0.2 million for the three months ended March 31, 2026 was primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at March 31, 2026 included reserve for net loss and LAE on our Legacy Reinsurance segment of $254.4 million.

Our foreign currency asset exposures at March 31, 2026 include $97.4 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $33.5 million of real estate investments denominated in Canadian dollars, as well as $7.4 million of funds withheld receivable based in various non-USD currencies.

Net foreign exchange gains of $0.4 million and $2.4 million were generated during the three and six months ended June 30, 2026, respectively, compared to net foreign exchange losses of $5.1 million for the three and six months ended June 30, 2025.

For the three and six months ended June 30, 2026, net foreign exchange gains were attributable to appreciation of the U.S.

dollar on the re-measurement of net loss reserves and insurance related liabilities denominated in non-USD currencies.

dollar strengthened relative to the Euro but weakened relative to British pound for the three months ended June 30, 2026, while it strengthened relative to both the British pound and euro for the six months ended June 30, 2026.

The appreciation was generally the result of safe-haven demand for U.S.

dollars in the face of geopolitical tensions during the period.

The foreign exchange gains for the three and six months ended June 30, 2026 were primarily unrealized from the effects of the revaluation of our net insurance liabilities that are required to be remeasured in foreign currencies at each balance sheet date.

The foreign exchange losses for the three and six months ended June 30, 2025 were caused by significant depreciation in the value of the U.S.

dollar relative to the euro and the British pound due to uncertainty around international trade and associated U.S.

tariff policy.

These losses were primarily unrealized and resulted from the effects of revaluation of our net insurance liabilities that are required to be settled in foreign currencies at each balance sheet date.

At June 30, 2026, the decrease in foreign currency translation adjustments of $0.4 million for the six months ended June 30, 2026 was primarily driven by exposures to euro, British pound and other non-USD denominated net loss reserves and insurance related liabilities in excess of foreign currency assets.

Our non-USD denominated liabilities at June 30, 2026 included reserve for net loss and LAE on our Legacy Reinsurance segment of $233.1 million.

Our foreign currency asset exposures at June 30, 2026 include $89.3 million of fixed maturity securities managed by our investment managers who have the discretion to hold foreign currency exposures as part of their total return strategy, $33.4 million of real estate investments denominated in Canadian dollars, as well as $6.4 million of funds withheld receivable based in various non-USD currencies.

Effects of Inflation

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Off-Balance Sheet Arrangements

At March 31, 2026, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

At June 30, 2026, we did not have any off-balance sheet arrangements as defined by Item 303(a) (4) of Regulation S-K.

Recent Accounting Pronouncements

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis