Segmented Information (Tables)

6 Months Ended

Jun. 30, 2017

Segmented Information [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENTED INFORMATION

The Company conducts its business through the following three reportable segments: Insurance Underwriting, Extended Warranty (formerly Insurance Services) and Leased Real Estate.

Insurance Underwriting Segment

Insurance Underwriting includes the following subsidiaries of the Company: Mendota, Mendakota, Mendakota Casualty Company ("MCC"), Kingsway Amigo Insurance Company ("Amigo") and Kingsway Reinsurance Corporation (collectively, "Insurance Underwriting"). Insurance Underwriting principally offers personal automobile insurance to drivers who do not meet the criteria for coverage by standard automobile insurers. Insurance Underwriting has policyholders in 12 states; however, new business is accepted in only eight states.

The Company previously placed Amigo and MCC into voluntary run-off in 2012 and 2011, respectively. Each of Amigo and MCC entered into a comprehensive run-off plan that was approved by its respective state of domicile. Kingsway continues to manage Amigo and MCC in a manner consistent with the run-off plans. During the first quarter of 2015, MCC sent a letter of intent to the Illinois Department of Insurance to resume writing private passenger automobile policies in the state of Illinois.  MCC began writing these policies on April 1, 2015.

Extended Warranty Segment

Extended Warranty includes the following subsidiaries of the Company: IWS Acquisition Corporation ("IWS") and Trinity Warranty Solutions LLC ("Trinity") (collectively, "Extended Warranty"). Prior to the second quarter of 2017, Extended Warranty was referred to as Insurance Services.

IWS is a licensed motor vehicle service agreement company and is a provider of after-market vehicle protection services distributed by credit unions in 24 states to their members.

Trinity is a provider of warranty products and maintenance support to consumers and businesses in the heating, ventilation, air conditioning, standby generator, commercial LED lighting and refrigeration industries. Trinity distributes its warranty products through original equipment manufacturers, HVAC distributors and commercial and residential contractors. Trinity distributes its maintenance support directly through corporate owners of retail spaces throughout the United States.

Leased Real Estate Segment

Leased Real Estate includes the Company's subsidiary, CMC, which was acquired on July 14, 2016. CMC owns the Real Property, which is leased to a third party pursuant to a long-term triple net lease. The Real Property is also subject to the Mortgage. When assessing and measuring the operational and financial performance of the Leased Real Estate segment, interest expense related to the Mortgage is included in Leased Real Estate's segment operating income.

Revenues and Operating Income (Loss) by Reportable Segment

Results for the Company's reportable segments are based on the Company's internal financial reporting systems and are consistent with those followed in the preparation of the unaudited consolidated interim financial statements. The following tables provide financial data used by management. Segment assets are not allocated for management use and, therefore, are not included in the segment disclosures below.

Revenues by reportable segment reconciled to consolidated revenues for the three and six months ended June 30, 2017 and June 30, 2016 were:

(in thousands)	Three months ended June 30,					Six months ended June 30,
	2017			2016		2017			2016
Revenues:
Insurance Underwriting:
Net premiums earned	$	33,518		$	31,813	$	66,440		$	61,240
Other income	2,560			2,665		5,033			4,938
Total Insurance Underwriting	36,078			34,478		71,473			66,178
Extended Warranty:
Service fee and commission income	6,873			5,394		13,435			10,716
Other income	51			62		136			116
Total Extended Warranty	6,924			5,456		13,571			10,832
Leased Real Estate:
Rental income	3,341			—		6,682			—
Other income	160			—		372			—
Total Leased Real Estate	3,501			—		7,054			—
Total segment revenues	46,503			39,934		92,098			77,010
Net premiums earned not allocated to segments	—			—		—			—
Net investment (loss) income	(2,366		)	1,072		(1,663		)	1,000
Net realized gains (losses)	734			67		1,132			(104		)
Other income not allocated to segments	44			64		89			111
Total revenues	$	44,915		$	41,137	$	91,656		$	78,017

The operating income (loss) by reportable segment in the following table is before income taxes and includes revenues and direct segment costs. Total segment operating income (loss) reconciled to the consolidated net loss for the three and six months ended June 30, 2017 and June 30, 2016 was:

(in thousands)	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Segment operating income (loss):
Insurance Underwriting	$	(417	)	$	181		$	(1,159	)	$	(58	)
Extended Warranty	685			(780		)	1,271			(936		)
Leased Real Estate	872			—			1,790			—
Total segment operating income (loss)	1,140			(599		)	1,902			(994		)
Net investment (loss) income	(2,366		)	1,072			(1,663		)	1,000
Net realized gains (losses)	734			67			1,132			(104		)
Amortization of intangible assets	(289		)	(307		)	(580		)	(602		)
Contingent consideration benefit	212			657			212			657
Impairment of intangible assets	—			—			(250		)	—
Interest expense not allocated to segments	(1,216		)	(1,108		)	(2,375		)	(2,201		)
Other income and expenses not allocated to segments, net	(2,776		)	(1,940		)	(4,736		)	(3,841		)
Foreign exchange losses, net	—			(9		)	(4		)	(10		)
(Loss) gain on change in fair value of debt	(2,702		)	1,068			(4,591		)	3,596
Equity in net (loss) income of investee	(145		)	(874		)	2,240			(943		)
Loss from continuing operations before income tax expense	(7,408		)	(1,973		)	(8,713		)	(3,442		)
Income tax expense	1,251			26			1,430			52
Net loss from continuing operations	$	(8,659	)	$	(1,999	)	$	(10,143	)	$	(3,494	)

Insurance Underwriting net premiums earned by line of business for the three and six months ended June 30, 2017 and June 30, 2016 were:

(in thousands)	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Insurance Underwriting:
Private passenger auto liability	$	22,933	$	21,656	$	45,309	$	41,731
Auto physical damage	10,585		10,157		21,131		19,509
Total net premiums earned	$	33,518	$	31,813	$	66,440	$	61,240

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

Revenues by reportable segment reconciled to consolidated revenues for the three and six months ended June 30, 2017 and June 30, 2016 were:

(in thousands)	Three months ended June 30,					Six months ended June 30,
	2017			2016		2017			2016
Revenues:
Insurance Underwriting:
Net premiums earned	$	33,518		$	31,813	$	66,440		$	61,240
Other income	2,560			2,665		5,033			4,938
Total Insurance Underwriting	36,078			34,478		71,473			66,178
Extended Warranty:
Service fee and commission income	6,873			5,394		13,435			10,716
Other income	51			62		136			116
Total Extended Warranty	6,924			5,456		13,571			10,832
Leased Real Estate:
Rental income	3,341			—		6,682			—
Other income	160			—		372			—
Total Leased Real Estate	3,501			—		7,054			—
Total segment revenues	46,503			39,934		92,098			77,010
Net premiums earned not allocated to segments	—			—		—			—
Net investment (loss) income	(2,366		)	1,072		(1,663		)	1,000
Net realized gains (losses)	734			67		1,132			(104		)
Other income not allocated to segments	44			64		89			111
Total revenues	$	44,915		$	41,137	$	91,656		$	78,017

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

egment operating income (loss) reconciled to the consolidated net loss for the three and six months ended June 30, 2017 and June 30, 2016 was:

(in thousands)	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Segment operating income (loss):
Insurance Underwriting	$	(417	)	$	181		$	(1,159	)	$	(58	)
Extended Warranty	685			(780		)	1,271			(936		)
Leased Real Estate	872			—			1,790			—
Total segment operating income (loss)	1,140			(599		)	1,902			(994		)
Net investment (loss) income	(2,366		)	1,072			(1,663		)	1,000
Net realized gains (losses)	734			67			1,132			(104		)
Amortization of intangible assets	(289		)	(307		)	(580		)	(602		)
Contingent consideration benefit	212			657			212			657
Impairment of intangible assets	—			—			(250		)	—
Interest expense not allocated to segments	(1,216		)	(1,108		)	(2,375		)	(2,201		)
Other income and expenses not allocated to segments, net	(2,776		)	(1,940		)	(4,736		)	(3,841		)
Foreign exchange losses, net	—			(9		)	(4		)	(10		)
(Loss) gain on change in fair value of debt	(2,702		)	1,068			(4,591		)	3,596
Equity in net (loss) income of investee	(145		)	(874		)	2,240			(943		)
Loss from continuing operations before income tax expense	(7,408		)	(1,973		)	(8,713		)	(3,442		)
Income tax expense	1,251			26			1,430			52
Net loss from continuing operations	$	(8,659	)	$	(1,999	)	$	(10,143	)	$	(3,494	)

Revenue from External Customers by Geographic Areas [Table Text Block]

et premiums earned by line of business for the three and six months ended June 30, 2017 and June 30, 2016 were:

(in thousands)	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Insurance Underwriting:
Private passenger auto liability	$	22,933	$	21,656	$	45,309	$	41,731
Auto physical damage	10,585		10,157		21,131		19,509
Total net premiums earned	$	33,518	$	31,813	$	66,440	$	61,240