By Chris Munro

Aug 15 - (The Insurer) - Kestrel Group closed Friday trading with its stock down 7.5% as investors responded to the fronting carrier’s Q2 2025 earnings, which included the company swinging to operating profit of $3.5 million from the prior year period’s loss of $0.5 million.

The company before the markets opened on Friday issued its first quarterly earnings announcement since Kestrel combined with Maiden Holdings in late May.

And investors have responded to the earnings report by sending down Nasdaq-listed Kestrel’s stock by 7.5%, with the company’s share price closing Friday at $27.47.

Kestrel and Maiden completed their combination on May 27, with the merger having first been announced in December.

The company’s share price is up 19.4% from the $23.00 that Kestrel’s stock ended at on May 27.

In its Q2 2025 earnings, Kestrel booked underwriting and fee income of $6.1 million, comprised $6.3 million of income from the legacy Maiden reinsurance business, and a loss of $0.2 million from its program services operation.

During the prior year period, Kestrel posted a marginal underwriting and fee loss.

Net income from continuing operations reached $70.4 million in the three months to June 30, 2025, compared with a net loss of $0.5 million in the prior year period.