Supplemental Condensed Consolidating Financial Information Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Income Statement [Table Text Block]

The following tables show condensed consolidating financial information for the Company as of March 31, 2013 and December 31, 2012 and for the periods ended March 31, 2013 and 2012, with a separate column for the Guarantor, the issuer and the other businesses of the Company combined ("Non-Guarantor subsidiaries").

				Condensed Consolidating Statement of Operations
				For the three months ended March 31, 2013
	KFSI			KAI			Other subsidiaries			Consolidation adjustments		Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Revenue:
Net premiums earned	$	—		$	—		$	28,068		$	—	$	28,068
Service fee and commission income	—			—			13,124			—		13,124
Net investment income, net realized losses other income	(116		)	(1,396		)	2,901			—		1,389
Loss on change in fair value of debt	—			(7,702		)	(1,249		)	—		(8,951		)
Total revenues	(116		)	(9,098		)	42,844			—		33,630
Expenses:
Loss and loss adjustment expenses	—			—			21,831			—		21,831
Commissions and premium taxes	—			—			6,712			—		6,712
Other expenses	823			1,633			18,641			—		21,097
Interest expense	—			2,799			(966		)	—		1,833
Total expenses	823			4,432			46,218			—		51,473
Loss before loss on buy-back of debt, equity in net income (loss) of investee and income tax (benefit) expense	(939		)	(13,530		)	(3,374		)	—		(17,843		)
Loss on buy-back of debt	—			(24		)	—			—		(24		)
Equity in net income (loss) of investee	—			255			—			—		255
Loss before income tax (benefit) expense	(939		)	(13,299		)	(3,374		)	—		(17,612		)
Income tax (benefit) expense	—			—			(276		)	—		(276		)
Equity in undistributed net (loss) income of subsidiaries	(16,397		)	(3,770		)	—			20,167		—
Net (loss) income	$	(17,336	)	$	(17,069	)	$	(3,098	)	$	20,167	$	(17,336	)

				Condensed Consolidating Statement of Operations
				For the three months ended March 31, 2012
	KFSI			KAI			Other subsidiaries			Consolidation adjustments		Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Revenue:
Net premiums earned	$	—		$	—		$	29,267		$	—	$	29,267
Service fee and commission income	—			—			9,529			—		9,529
Net investment income, net realized gains and other income	671			878			633			—		2,182
Loss on change in fair value of debt	—			(2,075		)	(2,256		)	—		(4,331		)
Total revenues	671			(1,197		)	37,173			—		36,647
Expenses:
Loss and loss adjustment expenses	—			—			21,775			—		21,775
Commissions and premium taxes	—			—			4,419			—		4,419
Other expenses	1,023			1,679			16,099			—		18,801
Interest expense	—			3,527			(1,678		)	—		1,849
Total expenses	1,023			5,206			40,615			—		46,844
Loss before loss on buy-back of debt, equity in net income (loss) of investee and income tax (benefit) expense	(352		)	(6,403		)	(3,442		)	—		(10,197		)
Equity in net income (loss) of investee	—			(2,266		)	—			—		(2,266		)
Loss before income tax (benefit) expense	(352		)	(8,669		)	(3,442		)	—		(12,463		)
Income tax (benefit) expense	—			—			59			—		59
Equity in undistributed net (loss) income of subsidiaries	(10,899		)	(3,926		)	—			14,825		—
Net (loss) income	$	(11,251	)	$	(12,595	)	$	(3,501	)	$	14,825	$	(12,522	)

Schedule of Condensed Balance Sheet [Table Text Block]

							Condensed Consolidating Balance Sheets
										As of March 31, 2013
	KFSI			KAI			Other subsidiaries			Consolidation adjustments			Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Assets:
Investments in subsidiaries	$	41,952		$	191,724		$	—		$	(233,676	)	$	—
Total investments	—			—			136,478			(58,102		)	78,376
Investment in investee	—			21,517			—			5,009			26,526
Cash and cash equivalents	1,846			12,952			76,023			—			90,821
Goodwill	—			—			9,105			—			9,105
Intangible assets	—			7,803			42,222			—			50,025
Other assets	4,306			235,150			467,185			(599,983		)	106,658
Asset held for sale	—			—			8,737						8,737
Total assets	48,104			469,146			739,750			(886,752		)	370,248
Liabilities and Equity:
Liabilities:
Unpaid loss and loss adjustment expenses:	$	—		$	—		$	101,204		$	—		$	101,204
Unearned premiums	—			—			52,116			—			52,116
LROC preferred units	—			—			14,903			—			14,903
Senior unsecured debentures	—			25,888			—			—			25,888
Subordinated debt	—			28,781			—			—			28,781
Notes payable	—			70,222			(70,222		)	—			—
Other liabilities	385			17,020			97,596			(15,364		)	99,637
Total liabilities	385			141,911			195,597			(15,364		)	322,529
Equity:
Common stock	$	296,621		$	829,681		$	574,299		$	(1,403,980	)	$	296,621
Additional paid-in capital	15,757			—			—			—			15,757
Accumulated deficit	(279,501		)	(478,546		)	(36,087		)	514,633			(279,501		)
Accumulated other comprehensive income (loss)	14,433			(23,900		)	5,941			17,959			14,433
Shareholders' equity attributable to common shareholders	47,310			327,235			544,153			(871,388		)	47,310
Noncontrolling interests in consolidated subsidiaries	409			—			—			—			409
Total equity	47,719			327,235			544,153			(871,388		)	47,719
Total liabilities and equity	$	48,104		$	469,146		$	739,750		$	(886,752	)	$	370,248

							Condensed Consolidating Balance Sheets
										As of December 31, 2012
	KFSI			KAI			Other subsidiaries			Consolidation adjustments			Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Assets:
Investments in subsidiaries	$	58,709		$	185,079		$	—		$	(243,788	)	$	—
Total investments	—			—			142,499			(54,499		)	88,000
Investment in investee	—			36,723			—			5,010			41,733
Cash and cash equivalents	1,932			6,371			72,510			—			80,813
Goodwill	—			—			8,421			—			8,421
Intangible assets	—			7,803			42,780			—			50,583
Other assets	5,004			229,206			452,199			(591,896		)	94,513
Asset held for sale	—			—			8,737			—			8,737
Total assets	65,645			465,182			727,146			(885,173		)	372,800
Liabilities and Equity:
Liabilities:
Unpaid loss and loss adjustment expenses:	—			—			106,564			—			106,564
Unearned premiums	—			—			45,047			—			45,047
LROC preferred units	—			—			13,655			—			13,655
Senior unsecured debentures	—			23,730			—			—			23,730
Subordinated debt	—			23,774			—			—			23,774
Notes payable	—			70,222			(70,222		)	—			—
Other liabilities	231			16,374			92,145			(14,134		)	94,616
Total liabilities	231			134,100			187,189			(14,134		)	307,386
Equity:
Common stock	296,621			829,681			572,079			(1,401,760		)	296,621
Additional paid-in capital	15,757			—			—			—			15,757
Accumulated deficit	(262,069		)	(474,768		)	(35,045		)	509,813			(262,069		)
Accumulated other comprehensive income (loss)	14,762			(23,831		)	2,923			20,908			14,762
Shareholders' equity attributable to common shareholders	65,071			331,082			539,957			(871,039		)	65,071
Noncontrolling interests in consolidated subsidiaries	343			—			—			—			343
Total equity	65,414			331,082			539,957			(871,039		)	65,414
Total liabilities and equity	$	65,645		$	465,182		$	727,146		$	(885,173	)	$	372,800

Schedule of Condensed Cash Flow Statement [Table Text Block]

				Condensed Consolidating Statement of Cash Flows
				For the three months ended March 31, 2013
	KFSI			KAI			Other subsidiaries			Consolidation adjustments			Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Cash provided by (used in):
Operating activities:
Net (loss) income	$	(17,336	)	$	(17,069	)	$	(3,098	)	$	20,167		$	(17,336	)
Equity in undistributed net income (loss) of subsidiaries	16,397			3,770			—			(20,167		)	—
Loss on change in fair value of debt	—			7,702			1,249			—			8,951
Other	853			2,360			(6,087		)	—			(2,874		)
Net cash used in operating activities	(86		)	(3,237		)	(7,936		)	—			(11,259		)
Investing activities:
Proceeds from sales and maturities of fixed maturities and equity investments	—			13,638			9,622			—			23,260
Purchase of investments	—			(1,012		)	(215		)	—			(1,227		)
Net proceeds from sales of limited liability investments	—			—			—			—			—
Other	—			(2,225		)	2,042			—			(183		)
Net cash provided by investing activities	—			10,401			11,449			—			21,850
Financing activities:
Redemption of senior unsecured debentures	—			(583		)	—			—			(583		)
Net cash (used in) provided by financing activities	—			(583		)	—			—			(583		)
Net (decrease) increase in cash and cash equivalents	(86		)	6,581			3,513			—			10,008
Cash and cash equivalents at beginning of period	1,932			6,371			72,510			—			80,813
Cash and cash equivalents at end of period	$	1,846		$	12,952		$	76,023		$	—		$	90,821

				Condensed Consolidating Statement of Cash Flows
				For the three months ended March 31, 2012
	KFSI			KAI			Other subsidiaries			Consolidation adjustments			Total
	(a "Guarantor")			(an "Issuer")			(the "Non-Guarantor subsidiaries")
Cash provided by (used in):
Operating activities:
Net (loss) income	$	(11,251	)	$	(12,595	)	$	(3,501	)	$	14,825		$	(12,522	)
Equity in undistributed net income (loss) of subsidiaries	10,899			3,926			—			(14,825		)	—
Loss on change in fair value of debt	—			2,075			2,256			—			4,331
Other	(6,205		)	490			(9,532		)	6,631			(8,616		)
Net cash (used in) provided by operating activities	(6,557		)	(6,104		)	(10,777		)	6,631			(16,807		)
Investing activities:
Proceeds from sales and maturities of investments	—			—			37,356			—			37,356
Purchase of investments	—			—			(33,173		)	—			(33,173		)
Other	—			(3		)	(345		)	—			(348		)
Net cash provided by (used in) investing activities	—			(3		)	3,838			—			3,835
Financing activities:
Common stock issued	132			6,631			—			(6,631		)	132
Net cash (used in) provided by financing activities	132			6,631			—			(6,631		)	132
Net (decrease) increase in cash and cash equivalents	(6,425		)	524			(6,939		)	—			(12,840		)
Cash and cash equivalents at beginning of period	22,389			873			62,224			—			85,486
Cash and cash equivalents at end of period	$	15,964		$	1,397		$	55,285		$	—		$	72,646