19 RESTRUCTURING

On September 17, 2012, the Company announced that it was restructuring its Insurance Underwriting and Insurance Services segments. As part of the restructuring, the Company intends to streamline its non-standard property and casualty insurance business operations. Specific to Insurance Underwriting, during the fourth quarter of 2012, the Company began taking steps to place all of Amigo into voluntary run-off. Amigo has entered into a comprehensive run-off plan which has been approved by the Florida Office of Insurance Regulation. Kingsway continues to manage Amigo in a manner consistent with its filed run-off plan.

As part of the restructuring, the Company will reduce staffing levels to be consistent with placing Amigo into run-off. The Company estimated that Insurance Underwriting would incur approximately $2.0 million in cash severance expenses due to reductions-in-force as part of the restructuring during the period beginning with the announcement through the end of 2013. From the time the restructuring was announced on September 17, 2012 through September 30, 2014, the Company has incurred severance expense of $2.0 million, $2.0 million of which has been paid through September 30, 2014.

Changes in the restructuring liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, and the related restructuring expense for the three and nine months ended September 30, 2014 and September 30, 2013 is as follows:



(in thousands)		For the three months ended September 30, 2014
	Restructuring liability, beginning of period	Restructuring expense		Cash payments		Restructuring liability, end of period
Insurance Underwriting:
Severance	35	—		(35	)	—
Lease abandonment	503	16		(91	)	428
Total Insurance Underwriting	538	16		(126	)	428
Insurance Services:
Lease abandonment	72	(11	)	(9	)	52
Total Insurance Services	72	(11	)	(9	)	52
Total	610	5		(135	)	480



(in thousands)		For the three months ended September 30, 2013
	Restructuring liability, beginning of period	Restructuring expense	Cash payments		Restructuring liability, end of period
Insurance Underwriting:
Severance	44	203	(131	)	116
Lease abandonment	1,071	20	(89	)	1,002
Total	1,115	223	(220	)	1,118



(in thousands)		For the nine months ended September 30, 2014
	Restructuring liability, beginning of period	Restructuring expense		Cash payments		Restructuring liability, end of period
Insurance Underwriting:
Severance	236	(74	)	(162	)	—
Lease abandonment	654	48		(274	)	428
Total Insurance Underwriting	890	(26	)	(436	)	428
Insurance Services:
Lease abandonment	94	(3	)	(39	)	52
Total Insurance Services	94	(3	)	(39	)	52
Severance expense not allocated to segments	146	—		(146	)	—
Total	1,130	(29	)	(621	)	480



(in thousands)		For the nine months ended September 30, 2013
	Restructuring liability, beginning of period	Restructuring expense	Cash payments		Restructuring liability, end of period
Insurance Underwriting:
Severance	214	1,089	(1,187	)	116
Lease abandonment	1,207	61	(266	)	1,002
Total	1,421	1,150	(1,453	)	1,118