Kestrel Group Ltd reported financial results for the second quarter ended June 30, 2026. The company recorded a net loss of $8.1 million, or $1.03 per share, compared to net income in the prior year period. Total revenues were $6.7 million, driven by Program Services fee revenue of $3.7 million and net premiums earned of $3.5 million. Premium produced by Program Services clients reached $109.6 million, reflecting significant growth over the previous year. The Legacy Reinsurance segment reported an underwriting loss of $1.3 million, primarily due to adverse prior period loss development and severance costs. As of June 30, 2026, total assets were $919.6 million with shareholders' equity at $114.0 million. Kestrel Group Ltd operates in the specialty insurance industry, providing fronting services to program managers, reinsurers, and brokers.

Kestrel Group Ltd. announced a final arbitration award regarding a reinsurance agreement, which denied the request to rescind the agreement but found the Cedant committed a material breach. The award requires adjustments to billing, accounting, and reserves, including a potential repayment of a portion of the approximately $10.8 million previously paid by the reinsurer, and an award of $1.0 million in attorney's fees.