The firm's capital position is under pressure, with equity contracting to $121.4 million against $406.4 million in total liabilities, while the investment portfolio remains limited to only $1.0 million.
| Total Assets | 527.85M | 548.76M | 4.7M | 954.6M | 1.85B | 2.32B | 2.95B |
| Asset Growth % | -22.97% | - | -99.51% | -48.31% | -20.48% | -21.23% | - |
| Total Investment Assets | 4M | 468.69M | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 1.36B | 468.69M | 0 | 0 | 0 | 0 | 0 |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | 62.51M | 17.67M | 4.47M | 5.59M | 1.13B | 1.36B | 1.5B |
| Cash & Equivalents | 62.21M | 16.95M | 4.29M | 5.55M | 46.62M | 66.09M | 135.83M |
| Receivables | 1.06B | 724K | 153.94K | 0 | 0 | 0 | 0 |
| Other Current Assets | 0 | 0 | 33.16K | 37.31K | 1.07B | 1.36B | 1.5B |
| Goodwill & Intangibles | 39.66M | 9.35M | 0 | 0 | 0 | 0 | 0 |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 8.51M | 9.35M | 0 | 0 | 0 | 0 | 0 |
| PP&E (Net) | 0 | 0 | 223.46K | 292.33K | 0 | 0 | 0 |
| Other Assets | 38.89M | 53.05M | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 406.41M | 420.47M | 699.48M | 705.44M | 1.56B | 1.94B | 2.42B |
| Total Debt | 176.72M | 176.46M | 255.28M | 314K | 255.57M | 255.35M | 255.13M |
| Net Debt | 114.51M | 159.51M | 250.99M | -5.24M | 208.95M | 189.26M | 119.3M |
| Long-Term Debt | 174.72M | 174.4M | 254.76M | 254.6M | 255.57M | 255.35M | 255.13M |
| Short-Term Debt | 273K | 363K | 277K | 201K | 0 | 0 | 0 |
| Total Current Liabilities | 0 | 0 | 735.91K | 2.23M | 1.19B | 1.53B | 1.95B |
| Accounts Payable | 0 | 0 | 298.65K | 1.72M | 0 | 0 | 0 |
| Deferred Revenue | 16.89M | 17.41M | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | -17.16M | -17.77M | 84.77K | 236.28K | 1.19B | 1.53B | 1.95B |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | 229.96M | 244.38M | -363.64M | -327.86M | -303.28M | -304.31M | -330.07M |
| Total Equity | 121.44M | 128.28M | 45.19M | 249.16M | 284.58M | 384.26M | 527.82M |
| Equity Growth % | 223.2% | - | -81.86% | -12.45% | -25.94% | -27.2% | - |
| Shareholders Equity | 121.44M | 128.28M | 45.19M | 249.16M | 284.58M | 384.26M | 527.82M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Retained Earnings | -6.23M | 1.2M | -687.91M | -486.94M | -442.86M | -498.3M | -615.84M |
| Common Stock | 101K | 100K | 1.5M | 1.5M | 1.49M | 923K | 898K |
| Accumulated OCI | 537K | 916K | -32.73M | -6.67M | -41.23M | -12.21M | 23.86M |
| Return on Equity (ROE) | 29.2% | 36.42% | 0.22% | -1.58% | -18.05% | 5.62% | 7.91% |
| Return on Assets (ROA) | 4.72% | 8.51% | 0.07% | -0.3% | -2.9% | 0.97% | 1.42% |
| Equity / Assets | 23.01% | 23.38% | 962.2% | 26.1% | 15.41% | 16.54% | 17.9% |
| Debt / Equity | 1.46x | 1.38x | 5.65x | 0.00x | 0.90x | 0.66x | 0.48x |
| Book Value per Share | 15.66 | 22.38 | 9.05 | 32.35 | 65.33 | 89.29 | 125.17 |
| Tangible BV per Share | 14.57 | 20.75 | 9.05 | 32.35 | 65.33 | 89.29 | 125.17 |
Legacy reserve volatility
As reported in financial statements, Kestrel Group's equity has contracted significantly from $249.2 million in 2023Q4 to $121.4 million by 2026Q1, reflecting a period of sustained capital depletion that suggests the firm is struggling to maintain its balance sheet strength amidst ongoing operational challenges.
The sharp decline in equity over the last ten quarters indicates that the firm is failing to generate sufficient internal capital to offset underwriting losses and potential reserve adjustments. Investors should monitor whether this downward trajectory in net assets continues, as it may eventually impair the company's ability to underwrite new legacy reinsurance blocks.
Based on the reported figures, loss reserves have fluctuated wildly, with claims payments swinging from a $12.1 million outflow in 2025Q3 to a $5.6 million inflow in 2025Q2, which indicates that the firm's actuarial assumptions regarding legacy liabilities may be subject to significant and unpredictable revisions.
The extreme volatility in loss ratios, ranging from negative 54.3% to positive 59.7%, suggests that the company's earnings are highly sensitive to prior-year reserve development. This instability implies that the balance sheet may be vulnerable to adverse development if the underlying legacy claims prove more costly than initially estimated.
According to recent SEC filings, the company's investment portfolio remains minimal at $1.0 million, a figure that appears insufficient to support the firm's $406.4 million in total liabilities, raising serious concerns regarding the liquidity available to meet potential claims-paying obligations in the near term.
The lack of a substantial, liquid investment portfolio suggests that Kestrel Group may be forced to rely on external financing or asset liquidation to meet its obligations. This structural deficiency in liquid assets warrants further investigation into the firm's ability to maintain solvency during periods of heightened claims activity.
As indicated by the financial data, the firm's reliance on legacy reinsurance run-off arbitrage creates a non-obvious risk where the balance sheet is exposed to long-tail litigation costs that could exceed the discounted reserves currently held, potentially leading to a rapid deterioration of the firm's capital position.
The firm's business model appears to prioritize the acquisition of legacy blocks, but the lack of transparency regarding the aging of these liabilities makes it difficult to assess the true risk profile. If social inflation or legal costs accelerate, the current reserve levels may prove inadequate, forcing a capital call or further balance sheet contraction.
Quick answers to the most common questions about buying KG stock.
As of 2025, Kestrel Group, Ltd. (KG) had total assets of $548.8M including $17.7M in current assets.
Kestrel Group, Ltd. (KG) carries total debt of $176.5M, offset by $16.9M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Kestrel Group, Ltd. (KG) has total shareholders' equity (book value) of $128.3M ($22.38 book value per share). Book value represents the net worth of the company belonging to common stock holders.