Kestrel Group Ltd has reported a dramatic turnaround in earnings, posting a net profit of $69.9 million for the second quarter of 2025, compared with a loss of $547,000 in the same period last year, according to a filing with the Securities and Exchange Commission.

The Bermudian-based speciality programme company credited much of the improvement to its merger with Maiden Holdings Ltd, completed in May. The combination generated a $73.6 million bargain purchase gain, booked as income because the fair value of Maiden’s net assets exceeded the purchase price.

Total revenues for the quarter rose to $5.6 million, up from $631,000 a year ago, while general and administrative expenses climbed to $5.1 million from $1.2 million, reflecting the expanded operations of the combined group. Net loss and loss adjustment expenses were reported at $6 million.

Earnings per share swung sharply higher, rising to $15.16 in Q2 2025 compared with a loss of 20 cents in Q2 2024.

The merger created a new holding company, incorporated in Bermuda, which began trading on Nasdaq under the ticker symbol KG on May 28. Maiden shares ceased trading the day before. Under the deal, each Maiden share was converted into 0.05 Kestrel shares, while Kestrel LLC equity holders received $40 million in cash and 2.75 million Kestrel shares, with the potential for more shares if performance milestones are met.

The combined company will focus on fronting services for managing general agents and reinsurers, supported by exclusive contracts with four carriers rated A- and owned by AmTrust: Sierra Speciality Insurance Co, Rochdale Insurance Co, Park National Insurance Co and Republic Fire and Casualty Insurance Co.

Kestrel retains the option to acquire those carriers outright within three years, according to the filing.

Kestrel’s legacy reinsurance business remains in run-off, while its attempts to sell its Scandinavian subsidiaries have faced delays after Swedish regulators blocked the original sale in June. Talks for a revised deal are continuing, the company said.