Kestrel Group Ltd

The Program Services segment provides fronting services to general agents and insurance carriers to leverage Kestrel’s trusted reputation to provide access to the U.S. property and casualty insurance market and insurance paper rated “A-” (Excellent) A.M. Best rating and expansive licenses in exchange for fees. Kestrel issues the policy through exclusive use of four insurance carriers, and those carriers presently retain and reinsure the risk. The Company continues to actively pursue reinsurance mechanisms with its existing partners that would selectively deploy the Company’s underwriting capacity that it believes could facilitate and accelerate both its fee and premium revenue growth.

In the second quarter of 2026, total fee revenues from the Program Services segment were $3.7 million, a 587.9% increase over the second quarter of 2025, a combination of expanding existing and new client accounts. Premium produced(1) by client programs during the second quarter of 2026 totaled $109.6 million, a 479.8% increase over the second quarter of 2025.

The second quarter results bring Program Services’ fee income to $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. Premium produced(1) by client programs for the six months ended June 30, 2026 totaled $203.8 million, a 382.5% increase over the same period in 2025.