Kestrel and Maiden close merger, forming specialty program group

By Isha Marathe

May 27 - (The Insurer) - Kestrel Group and Maiden Holdings closed their combination agreement previously announced on December 30, 2024, to form a publicly listed specialty program group operating under the name Kestrel Group.

Maiden shares will cease trading on the Nasdaq at the close of market on May 27, and Kestrel Group shares will begin trading on the Nasdaq at the open of market on May 28 under the ticker symbol "KG".

Kestrel Group will continue to write business through its exclusive use of A.M. Best A-minus FSC XV insurance carriers Sierra Specialty Insurance Company, Rochdale Insurance Company, Park National Insurance Company and Republic Fire and Casualty Insurance Company, all subsidiaries of AmTrust, and retains an option to acquire the insurers from AmTrust.

"The combination of these two companies creates a capital light, fee-based insurance platform with the ability to selectively deploy underwriting capacity to optimize shareholder returns," said Kestrel Group president and chief financial officer Patrick Haveron.

"As Maiden completes the strategic pivot it began in 2024, I look forward to partnering with the Ledbetters to deliver value to all of Kestrel Group's stakeholders."

The transaction values Kestrel at up to $167.5 million, comprising upfront cash of $40 million, 55 million common shares of the combined company valued at $82.5 million, and an earnout of up to $45 million payable in common shares of the combined company, Program Manager reported in December 2024.

In April, Bermuda-based Maiden's shareholders approved all proposals related to the proposed business combination with Kestrel Group to form the new specialty program group.

Under the terms of the agreement, each issued and outstanding common share of Maiden will be converted into the right to receive one common share in a newly formed Bermuda company that will acquire both Maiden and Kestrel, Program Manager reported.