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KWY, Kingsway Corporation

Insurance — Property & Casualty financial Unprofitable

Kingsway Corporation owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, and that have recurring revenues.

In this report, the terms "Kingsway," the "Company," "we," "us" or "our" mean Kingsway Financial Services Inc. and all entities included in our Consolidated Financial Statements.

Kingsway Corporation owns or controls subsidiaries primarily in the business services and extended warranty industries.

Latest annual: FY2025 10-K

KWY · Kingsway Corporation

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$135M

+23.4% YoY · 17% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $154M 5-yr avg $104M

Return on equity −61% 5-yr avg 12%

Next report By 11/8 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~37 days after · the wire records it on arrival

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
What moves the needle: Underwriting discipline and the float. What decides it: whether the combined ratio stays below 100% so the policies make money on their own, how large the float is against equity, and what that float earns once it is invested. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: The underwriting result is not cleanly tagged in the filings. Book value per share, the measure Berkshire is judged on, has compounded about −17% a year across the record. Whether the discipline holds through a soft market, and how the float is invested, are what the 10-K decides.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
											Income statement
$177M	$138M	$52M	$60M	$61M	$78M	$93M	$103M	$109M	$135M	$154M	RevenueRevenue
$128M	$130M	—	—	—	—	—	—	—	—	$126M	Premiums earnedPremiums
$8M	$7M	$3M	$3M	$3M	$2M	$2M	$2M	$1M	$2M	$2M	Investment incomeInv. inc.
($10M)	($13M)	($22M)	($3M)	($7M)	($7M)	$35M	$24M	($8M)	($14M)	—	Pretax incomePretax
$238K	($17M)	($31M)	($7M)	($8M)	($836K)	$24M	$23M	($9M)	($12M)	($8M)	Net incomeNet inc.
											Cash flow & returns
($16M)	($14M)	($10M)	$759K	$2M	($6M)	($15M)	($26M)	$1M	($3K)	$3M	Operating cash flowOp. cash
($16M)	—	—	—	$1M	($7M)	—	—	—	—	—	Owner earningsOwner earn.
22%	2%	—	—	—	—	—	—	—	—	5%	Expense ratioExpense
0%	-41%	-247%	-790%	—	—	156%	85%	-112%	-79%	-61%	Return on equityROE
0%	−41%	−247%	−790%	—	—	156%	85%	−112%	−79%	−61%	Retained to equityRetained/eq
$125K	$0	—	—	—	—	$0	$3M	$3M	$345K	—	BuybacksBuybacks
($9M)	$20M	$20M	($6M)	$4M	($9M)	$101M	$6M	($17M)	($30M)	—	Investing cash flowInv. cash
$9M	$2M	($4M)	$1M	$14M	($540K)	($38M)	($40M)	$11M	$33M	—	Financing cash flowFin. cash
($15M)	$8M	$11M	—	$19M	($12M)	$50M	($60M)	($4M)	$3M	—	Change in cashΔ cash
											Balance sheet
$128M	$80M	$60M	$71M	$70M	$68M	$57M	$42M	$41M	$42M	$39M	Investments (total)Investments
$2M	$1M	$2M	$2M	$1M	—	—	—	—	—	—	Float (net reserves)Float
$501M	$507M	$378M	$400M	$452M	$476M	$286M	$198M	$187M	$231M	$228M	Total assetsAssets
$438M	$451M	$348M	$379M	$434M	—	—	$173M	$168M	$197M	—	Total liabilitiesTotal liab.
$6M	$5M	$6M	$7M	$7M	—	—	—	$8M	$17M	—	Redeemable interestsRedeemable
$829K	$9M	$12M	$13M	$14M	—	—	($3M)	$2M	$2M	—	Noncontrolling interestsNCI
$56M	$41M	$12M	$874K	($2M)	($6M)	$16M	$28M	$8M	$15M	$13M	Shareholders’ equityEquity
											Per share
20.0M	21.5M	21.7M	21.9M	22.2M	22.5M	25.3M	26.4M	27.2M	27.9M	28.6M	Shares out (diluted)Shares
$0.01	$-0.79	$-1.41	$-0.32	$-0.35	$-0.04	$0.96	$0.89	$-0.35	$-0.43	$-0.27	EPS (diluted)EPS
$-0.81	—	—	—	$0.07	$-0.30	—	—	—	—	—	Owner earnings / shareOE/sh
$2.80	$1.92	$0.57	$0.04	$-0.09	$-0.25	$0.62	$1.05	$0.31	$0.54	$0.45	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−6.5%/yr	+12.0%/yr
Capital spending / share	+2.7%/yr (5-yr)	+2.7%/yr
Book value / share	−16.6%/yr	—

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Is it a good business?

Combined ratio —

Not enough data

Industry peers: median 87%

What this means
Premiums or claims weren't found in the filing data.
Return on equity −79%

Loss on equity

Net income ($12M) ÷ equity $15M

Industry peers: median 4%

What this means
What it earns on shareholders' capital, the underwriting result plus what the float earns invested. Durably above the ~10% cost of equity is what compounds book value.

The float

Float —

Not enough data

What this means
The float components weren't cleanly tagged, and a partial figure would mislead — withheld rather than approximated.
Investment income $2M

earned on investments

Net investment income $2M

What this means
What the float and capital earned this year. This is the second engine: an insurer that breaks even on underwriting still wins if the float is large and invested well.

The cost and the reserves

Cost of float —

Not enough data

What this means
Needs the full float arithmetic and a cleanly tagged underwriting total; a partial figure would mislead.
Reserve development +$149K

Past reserves fell short

Prior-year development, FY2020: unfavorable (past years strengthened) · record: 0 favorable, 2 unfavorable of 2

What this means
Each year an insurer restates what its old accident years actually cost. Persistent favorable development means management reserved honestly and released the cushion; persistent unfavorable development means past profits were overstated by under-reserving — the industry's chronic sin, and the single most tell-tale line an owner can read. Signed as the company files it: negative favorable, positive unfavorable.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$79M

Cash & short-term investments$8M
Inventory$2M
Other current assets$70M

Current liabilities$91M

Debt due within a year$23M
Accounts payable$4M
Other current liabilities$64M

Current ratio0.87×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.85×stricter: inventory excluded

Cash ratio0.08×strictest: cash alone against what's due

Working capital($11M)the cushion left after near-term bills

Debt due this year vs. cash$23M due · $8M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Jun 30, 2026 balance sheet

Revenue, latest quarter vs. a year ago+27.6%the freshest read on whether the business is still growing

Current ratio, recent quarters0.9× → 0.9×

Deeper floors

Tangible book value($101M)equity stripped of goodwill & intangibles

Net current asset value($116M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$74M$7M of it operating leases

Deferred revenue$90Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$121M52% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equityexceeds itgoodwill alone is larger than the company’s entire book equity; stripped of the acquisition premium, there is no net book worth

Cash spent acquiring$89Mover 15 years since fiscal 2011 buying other businesses, against $2M of capital spent building over the 10-year record

$1M written down across 2 years (2024, 2025): goodwill the company has already conceded it overpaid for, charged against earnings. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Beside that spending sits $47M of cumulative amortization of acquired intangibles charged against earnings since fiscal 2011 — the purchase price of past deals, expensed over time.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and amortization summed across the company's full tagged history, write-downs across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Net income
2023	Mr. Fitzgerald	$610k	$1.2M	$23M
2024	Mr. Fitzgerald	$637k	$592k	($9M)
2025	Mr. Fitzgerald	$638k	$2.6M	($12M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Net income is the whole business's, as filed, for the same fiscal years.

Insider ownership41.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$2M
The slice of the business handed to employees in shares in fiscal 2025, 1.3% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Insurance — Property & Casualty

The same industry, side by side on the underwriting lens. Each column names the period it is read over, and a median resting on fewer than three years carries that count beside it; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Combined ratiomedian over the record	Loss ratiomedian over the record	Yield on floatmedian over the record	ROTCEmedian over the record
GBLIGlobal Indemnity Group, LLC	$451M	—	59%	6.2%	4%
ASICAtegrity Specialty Insurance Company Holdings	$424M	93%2y	59%2y	6.8%2y	12%2y
ACICAmerican Coastal Insurance Corporation	$335M	—	62%	4.7%	2%
AMSFAMERISAFE Inc.	$317M	84%	57%	4.5%	18%
NODKNI Holdings Inc.	$285M	—	69%	8.5%	3%
AIIAmerican Integrity Insurance Group Inc.	$276M	75%2y	45%2y	11.9%2y	27%2y
KWYKingsway Corporation	$135M	—	86%1y	—	—
MHLAMaiden Holdings, Ltd.	$75M	129%	73%4y	5.0%	-15%
Group median	—	—	61%	—	—

The price

What a price has to assume.

What the price implies

reverse-DCF

A bank / financial isn't read on an owner-earnings DCF; its economics live on the balance sheet (book value, the return earned on it, and the cash the assets throw off).

Weigh KWY against another business →

The owners of KWY: the meeting and the votes →

Cite: Owner Scorecard, "Kingsway Corporation (KWY), the owner's record," https://ownerscorecard.com/c/KWY, data as of 2026-08-17.

Manual order: ← KWR its page in the Manual KYMR →

Industry order: ← KNSL the Insurance — Property & Casualty chapter L →