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 nine months ended September 30, 2015 and September 30, 2014 are as follows:



(in thousands)			For the three months ended September 30, 2015
	Restructuring Liability, Beginning of Period		Restructuring Expense		Cash Payments			Restructuring Liability, End of Period
Insurance Underwriting:
Lease abandonment	$	294	$	15	$	(44	)	$	265
Total Insurance Underwriting	294		15		(44		)	265
Insurance Services:
Lease abandonment	21		—		(10		)	11
Total Insurance Services	21		—		(10		)	11
Total	$	315	$	15	$	(54	)	$	276



(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



			For the nine months ended September 30, 2015
	Restructuring Liability, Beginning of Period		Restructuring Expense		Cash Payments			Restructuring Liability, End of Period
Insurance Underwriting:
Lease abandonment	$	352	$	45	$	(132	)	$	265
Total Insurance Underwriting	352		45		(132		)	265
Insurance Services:
Lease abandonment	41		—		(30		)	11
Total Insurance Services	41		—		(30		)	11
Total	$	393	$	45	$	(162	)	$	276



			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