KGKestrel Group Ltd
Jun 8, 4:26 PM ET
Kestrel Group arbitration denies rescission of reinsurance deal, orders partial repayment
On June 2, 2026, an arbitration panel issued a final award in a dispute between subsidiary Maiden Reinsurance Ltd. and a ceding company. The panel denied the request to rescind the reinsurance agreement, but unanimously found the ceding company committed an intentional and material breach, and the award requires adjustments that include repayment of part of the approximately $10.8 million previously paid. The amount and timing of any net financial statement impact have not yet been determined.
- Final Award dated June 2, 2026; by majority, the panel denied rescission, and attachment points and limits remain unchanged.
- The panel unanimously found the Cedant made an intentional and material breach by changing its reserving or claims methods without the reinsurer's consent.
- The subsidiary previously paid $10.8 million in net losses and may have to repay part of that amount.
- The subsidiary was awarded $1.0 million in attorneys' fees; as of March 31, 2026, reserves were $11.5 million and premiums received totaled $19.5 million.