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 reduced 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. As of December 31, 2014, the Company paid $2.0 million related to severance incurred as part of the restructuring. At December 31, 2014, the remaining severance liability related to the restructuring is zero.

Changes in the restructuring liability, which is included in accrued expenses and other liabilities in the consolidated balance sheets, and the related restructuring expense, which is included in general and administrative expenses in the consolidated statements of operations, for the three and six months ended June 30, 2015 and June 30, 2014 is as follows:



(in thousands)			For the three months ended June 30, 2015
	Restructuring liability, beginning of period		Restructuring expense		Cash payments			Restructuring liability, end of period
Insurance Underwriting:
Lease abandonment	$	323	$	15	$	(44	)	$	294
Total Insurance Underwriting	323		15		(44		)	294
Insurance Services:
Lease abandonment	31		—		(10		)	21
Total Insurance Services	31		—		(10		)	21
Total	$	354	$	15	$	(54	)	$	315



(in thousands)			For the three months ended June 30, 2014
	Restructuring liability, beginning of period		Restructuring expense			Cash payments			Restructuring liability, end of period
Insurance Underwriting:
Severance	$	109	$	(74	)	$	—		$	35
Lease abandonment	578		16			(91		)	503
Total Insurance Underwriting	687		(58		)	(91		)	538
Insurance Services:
Lease abandonment	83		4			(15		)	72
Total Insurance Services	83		4			(15		)	72
Total	$	770	$	(54	)	$	(106	)	$	610



			For the six months ended June 30, 2015
	Restructuring liability, beginning of period		Restructuring expense		Cash payments			Restructuring liability, end of period
Insurance Underwriting:
Lease abandonment	$	352	$	30	$	(88	)	$	294
Total Insurance Underwriting	352		30		(88		)	294
Insurance Services:
Lease abandonment	41		—		(20		)	21
Total Insurance Services	41		—		(20		)	21
Total	$	393	$	30	$	(108	)	$	315



			For the six months ended June 30, 2014
	Restructuring liability, beginning of period		Restructuring expense			Cash payments			Restructuring liability, end of period
Insurance Underwriting:
Severance	$	236	$	(74	)	$	(127	)	$	35
Lease abandonment	654		32			(183		)	503
Total Insurance Underwriting	890		(42		)	(310		)	538
Insurance Services:
Lease abandonment	94		8			(30		)	72
Total Insurance Services	94		8			(30		)	72
Severance expense not allocated to segments	146		—			(146		)	—
Total	$	1,130	$	(34	)	$	(486	)	$	610