Kestrel Group Ltd. (KG)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Kestrel Group is a small Bermuda reinsurer with 44 employees, operating Program Services and Legacy Reinsurance. In filed figures, FY2025, period ended 2025-12-31, produced revenue of $34.0M and net income of $46.7M, but the quality of that profit is questionable: fiscal Q2 2025, the quarter ended 2025-06-30, alone showed revenue of $5.6M and net income of $69.9M, more than the full-year total, which suggests one-time or accounting effects rather than durable underwriting. Since then, fiscal Q1 2026, quarter ended 2026-03-31, had revenue of $10.2M and a net loss of $7.4M; fiscal Q2 2026, quarter ended 2026-06-30, had revenue of $6.7M and a net loss of $8.1M. Trailing EPS is -$12.22, ROE is -26.90%, FairStock Piotroski is 1/9, and debt-to-equity is 1.55. At the 2026-10-13 close of $4.69, the FairStock P/B is 0.32, which looks cheap versus accounting book. But for a reinsurer, a deep discount to book can mean the market doubts reserves, legacy liabilities, or capital adequacy. Revenue growth of 305.71% from a tiny base and profit growth of -999.00% do not establish consistency. FairStock assigns a 60/100 score and no Lynch category because only two years of filed results exist. Missing CET1, NIM, combined ratio, and reserve-development data make the credit and underwriting risk impossible to underwrite fully. I would require evidence of sustainable underwriting profit and stable reserves before trusting the book value.

In plain English: Kestrel Group is a small Bermuda reinsurer that provides fronting and legacy reinsurance services. It grew revenue from a tiny base and reported a profit for fiscal 2025, but recent quarters show large losses, negative returns, and meaningful debt. The share price looks low compared with the company's stated net worth, yet the weak and inconsistent earnings mean it is not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer