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, MCC, 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, Trinity and PWSC (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 23 states and the District of Columbia to their members.

Trinity sells warranty products and provides maintenance support to consumers and businesses in the HVAC, 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.

PWSC sells new home warranty products and provides administration services to home builders and homeowners across the United States. PWSC distributes its products and services through an in house sales team and through insurance brokers and insurance carriers throughout all states except Alaska and Louisiana.

Effective April 1, 2015, the Company closed on the sale of its wholly owned subsidiary, ARS. As a result, ARS has been classified as discontinued operations and the results of their operations are reported separately for all periods presented. Prior to the transaction, ARS was included in the Extended Warranty segment. As a result of classifying ARS as a discontinued operation, all segmented information has been restated to exclude ARS from the Extended Warranty segment.

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 that 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 (Loss) Income 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 consolidated 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 years ended December 31, 2017, 2016 and 2015 were:



(in thousands)	Years ended December 31,
	2017			2016			2015
Revenues:
Insurance Underwriting:
Net premiums earned	$	130,443		$	127,608		$	117,433
Other income	9,901			10,272			8,937
Total Insurance Underwriting	140,344			137,880			126,370
Extended Warranty:
Service fee and commission income	31,909			24,232			22,966
Other income	191			283			368
Total Extended Warranty	32,100			24,515			23,334
Leased Real Estate:
Rental income	13,364			5,419			—
Other income	493			50			—
Total Leased Real Estate	13,857			5,469			—
Total segment revenues	186,301			167,864			149,704
Rental income not allocated to segments	20			17			—
Net investment income	2,669			8,244			2,955
Net realized gains	3,771			360			1,197
Other-than-temporary impairment loss	(316		)	(157		)	(10		)
Other income not allocated to segments	749			302			6,120
Total revenues	$	193,194		$	176,630		$	159,966

The operating (loss) income by reportable segment in the following table is before income taxes and includes revenues and direct segment costs. Total segment operating loss reconciled to the consolidated loss from continuing operations for the years ended December 31, 2017, 2016 and 2015 were:



(in thousands)	Years ended December 31,
	2017			2016			2015
Segment operating (loss) income
Insurance Underwriting	$	(20,606	)	$	(8,202	)	$	(1,147	)
Extended Warranty	3,957			506			(628		)
Leased Real Estate	3,099			627			—
Total segment operating loss	(13,550		)	(7,069		)	(1,775		)
Net investment income	2,669			8,244			2,955
Net realized gains	3,771			360			1,197
Other-than-temporary impairment loss	(316		)	(157		)	(10		)
Amortization of intangible assets	(1,152		)	(1,242		)	(1,244		)
Contingent consideration benefit	212			657			1,139
Impairment of intangible assets	(250		)	—			—
Interest expense not allocated to segments	(4,977		)	(4,496		)	(5,278		)
Other income and expenses not allocated to segments, net	(9,436		)	(7,640		)	(3,790		)
Foreign exchange losses, net	(15		)	(15		)	(1,215		)
(Loss) gain on change in fair value of debt	(8,487		)	(3,721		)	1,458
Gain (loss) on deconsolidation of subsidiaries	—			5,643			(4,420		)
Equity in net income (loss) of investees	2,115			(1,017		)	(339		)
Loss from continuing operations before income tax (benefit) expense	(29,416		)	(10,453		)	(11,322		)
Income tax (benefit) expense	(17,761		)	(9,720		)	93
Loss from continuing operations	$	(11,655	)	$	(733	)	$	(11,415	)

Insurance Underwriting net premiums earned by line of business for the years ended December 31, 2017, 2016 and 2015 were:



(in thousands)	Years ended December 31,
	2017		2016		2015
Insurance Underwriting:
Private passenger auto liability	$	89,235	$	69,086	$	79,258
Auto physical damage	41,208		58,522		38,175
Total net premiums earned	$	130,443	$	127,608	$	117,433