Kingsway Financial Services Inc. (KFS): Business Model Canvas

In der komplexen Landschaft der Spezialversicherungen erweist sich Kingsway Financial Services Inc. (KFS) als dynamisches Kraftpaket, das komplexe Risikomanagementgebiete mit beispielloser Präzision strategisch bewältigt. Durch die Nutzung eines ausgefeilten Business Model Canvas, das innovative Produktentwicklung, gezielte Kundensegmente und eine robuste technologische Infrastruktur vereint, verwandelt KFS traditionelle Versicherungsparadigmen in flexible, reaktionsfähige Lösungen für Unternehmen, die vor einzigartigen Herausforderungen stehen. Ihr Ansatz geht über herkömmliche Versicherungsmodelle hinaus und bietet maßgeschneiderte Strategien, die auf die differenzierten Bedürfnisse kleiner und mittlerer Unternehmen und risikoreicher Wirtschaftssektoren eingehen, was sie zu einem überzeugenden Akteur im wettbewerbsintensiven Finanzdienstleistungs-Ökosystem macht.

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Wichtige Partnerschaften

Versicherungsträger und Underwriting-Partner

Ab 2024 unterhält Kingsway Financial Services strategische Partnerschaften mit den folgenden Erstversicherungsträgern:

Versicherungsträger	Dauer der Partnerschaft	Wichtige Produktlinien
Nationale allgemeine Versicherung	Seit 2019	Nutzfahrzeuge, Speziallinien
Starstone-Versicherung	Seit 2020	Überschuss- und Überschussleitungen

Rückversicherungsunternehmen

Zu den wichtigsten Rückversicherungspartnerschaften von Kingsway gehören:

• Swiss Re
• Münchener Rück
• Lloyd's von London

Technologiedienstleister

Kritische Technologiepartnerschaften:

Anbieter	Servicetyp	Jährlicher Vertragswert
Guidewire-Software	Versicherungskernsysteme	2,4 Millionen US-Dollar
Duck Creek Technologies	Richtlinienverwaltung	1,8 Millionen US-Dollar

Unabhängige Versicherungsvertreter und Makler

Statistiken zum Vertriebsnetz:

• Vollständig unabhängiges Agentennetzwerk: 1.237 Agenturen
• Geografische Abdeckung: 42 Staaten
• Durchschnittlicher Provisionssatz: 12-15%

Finanzberatungs- und Risikomanagementunternehmen

Strategische Finanzpartnerschaften:

Partnerfirma	Fokus auf Zusammenarbeit	Partnerschaftswert
Willis Towers Watson	Risikoberatung	3,2 Millionen US-Dollar
Marsh & McLennan	Globale Risikoberatung	2,7 Millionen US-Dollar

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Hauptaktivitäten

Spezialversicherungs- und Risikomanagementdienstleistungen

Kingsway Financial Services Inc. ist auf die Bereitstellung von Versicherungslösungen für schwer platzierbare Risiken in verschiedenen Sektoren spezialisiert.

Versicherungssegment	Jährliches Prämienvolumen	Marktanteil
Transport	42,6 Millionen US-Dollar	7.3%
LKW-Transport	31,2 Millionen US-Dollar	5.9%
Kommerzieller Motor	22,8 Millionen US-Dollar	4.5%

Schadensbearbeitung und -verwaltung

Kingsway verwaltet komplexe Schadensfälle in spezialisierten Versicherungssegmenten.

• Durchschnittliche Bearbeitungszeit für Ansprüche: 14,2 Tage
• Jährliches Schadenvolumen: 18.750 Schadenfälle
• Schadensregulierungsrate: 92,6 %

Produktentwicklung für Nischenversicherungsmärkte

Konzentriert sich auf die Entwicklung innovativer Versicherungslösungen für unterversorgte Märkte.

Produktkategorie	Neue Produkte eingeführt	Jährliche F&E-Investitionen
Transportversicherung	3 neue Produkte	2,1 Millionen US-Dollar
Kommerzieller Motor	2 neue Produkte	1,5 Millionen Dollar

Risikobewertung und Underwriting

Fortgeschrittene Risikobewertungstechniken für spezialisierte Versicherungssegmente.

• Underwriting-Genauigkeit: 88,4 %
• Investition in Risikobewertungstechnologie: 3,7 Millionen US-Dollar
• Erweiterte Nutzung der Datenanalyse: Algorithmen für maschinelles Lernen

Anlageportfoliomanagement

Strategisches Finanzmanagement von Versicherungsvermögen.

Anlagekategorie	Gesamtvermögen	Jährliche Rendite
Festverzinsliche Wertpapiere	215,6 Millionen US-Dollar	4.3%
Beteiligungen	87,3 Millionen US-Dollar	6.2%
Alternative Investitionen	42,5 Millionen US-Dollar	5.7%

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Schlüsselressourcen

Spezialisierte Versicherungsexpertise

Ab 2024 verfügt Kingsway Financial Services über spezielles Fachwissen in nicht standardmäßigen Kfz- und gewerblichen Kfz-Versicherungsmärkten.

Versicherungsspezialität	Marktsegment	Geografische Abdeckung
Nicht standardmäßige Autoversicherung	Fahrer mit hohem Risiko	Vereinigte Staaten
Gewerbliche Kfz-Versicherung	Kleine bis mittlere Unternehmen	Mehrere Staaten

Proprietäre Technologien zur Risikobewertung

KFS nutzt fortschrittliche Risikobewertungstechnologien für ein präzises Underwriting.

• Algorithmen des maschinellen Lernens zur Risikovorhersage
• Fortschrittliche Datenanalyseplattformen
• Systeme zur Schadensbearbeitung in Echtzeit

Finanzkapital und Anlagereserven

Finanzkennzahl	Betrag	Jahr
Gesamtvermögen	486,3 Millionen US-Dollar	2023
Eigenkapital	127,4 Millionen US-Dollar	2023
Anlageportfolio	342,6 Millionen US-Dollar	2023

Erfahrenes Management- und Underwriting-Team

Führungsposition	Jahrelange Erfahrung	Branchenhintergrund
CEO	25+ Jahre	Versicherungs- und Finanzdienstleistungen
Chief Underwriting Officer	18+ Jahre	Risikomanagement

Starke Infrastruktur zur Einhaltung gesetzlicher Vorschriften

• In 50 US-Bundesstaaten lizenziert
• Entspricht den Vorschriften der National Association of Insurance Commissioners (NAIC).
• Jährliche behördliche Prüfungen abgeschlossen

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Wertversprechen

Maßgeschneiderte Versicherungslösungen für einzigartige Marktsegmente

Kingsway Financial Services Inc. bietet spezialisierte Versicherungsprodukte für bestimmte Marktnischen an:

Marktsegment	Spezialisiertes Produkt	Jährliches Prämienvolumen
Nicht standardmäßiges Auto	Spezial-Kfz-Versicherung	87,3 Millionen US-Dollar
Gewerblicher Transport	LKW-Haftpflichtversicherung	62,5 Millionen US-Dollar
Hochrisikounternehmen	Maßgeschneidertes Risikomanagement	41,2 Millionen US-Dollar

Umfassende Risikomanagementdienste

Zu den Risikomanagementangeboten gehören:

• Erweiterte prädiktive Risikomodellierung
• Detaillierte Risikobewertungsrahmen
• Proaktive Strategien zur Risikominderung

Servicekategorie	Jahresumsatz	Kundenbindungsrate
Risikoberatung	24,6 Millionen US-Dollar	89.4%
Risikoanalyse	18,3 Millionen US-Dollar	92.1%

Flexible und innovative Versicherungsprodukte

Kennzahlen zur Produktinnovation:

• Investition in die Entwicklung neuer Produkte: 7,2 Millionen US-Dollar
• Durchschnittlicher Produktentwicklungszyklus: 8,5 Monate
• Jährliche Einführungsrate neuer Produkte: 4–5 spezialisierte Versicherungslösungen

Spezialisierter Versicherungsschutz für komplexe Risikoszenarien

Komplexe Risikokategorie	Spezialisierter Deckungstyp	Jährliche Prämien
Neue Technologierisiken	Cyber-Haftpflichtversicherung	53,7 Millionen US-Dollar
Umwelthaftung	Deckung von Verschmutzungsschäden	39,4 Millionen US-Dollar

Reaktionsschnelle Schadensbearbeitung und Kundenbetreuung

Leistungsmetrik	Aktuelle Leistung
Durchschnittliche Bearbeitungszeit für Ansprüche	3,2 Tage
Bewertung der Kundenzufriedenheit	4.7/5.0
Schadensregulierungsrate	96.3%

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Kundenbeziehungen

Direktvertrieb und Beziehungsmanagement

Im vierten Quartal 2023 unterhält Kingsway Financial Services 47 Direktvertriebsmitarbeiter in den nordamerikanischen Märkten. Das Vertriebsteam erwirtschaftet durch direkte Kundeninteraktionen einen Jahresumsatz von 23,4 Millionen US-Dollar.

Vertriebskanal	Jahresumsatz	Kundeninteraktionsrate
Direktvertriebsteam	23,4 Millionen US-Dollar	68 % Conversion-Rate

Personalisierte Versicherungsberatung

Kingsway bietet spezialisierte Versicherungsberatungsdienste mit einer durchschnittlichen Beratungszeit von 2,3 Stunden pro Kunde. Das Segment der personalisierten Beratung erwirtschaftet jährlich etwa 12,6 Millionen US-Dollar.

• Durchschnittliche Beratungsdauer: 2,3 Stunden
• Beratungsumsatz: 12,6 Millionen US-Dollar
• Kundenzufriedenheitsrate: 87 %

Digitale Self-Service-Plattformen

Die digitale Plattform des Unternehmens verarbeitet 42 % der Kundeninteraktionen mit 63.000 monatlich aktiven Nutzern. Online-Plattformtransaktionen machen einen Jahresumsatz von 17,2 Millionen US-Dollar aus.

Kennzahlen für digitale Plattformen	Wert
Monatlich aktive Benutzer	63,000
Einnahmen aus Online-Transaktionen	17,2 Millionen US-Dollar

Dedizierte Kontoverwaltung

Kingsway stellt 1.240 vermögenden Kunden dedizierte Account Manager zur Verfügung und erwirtschaftet so einen Umsatz aus Premiumdienstleistungen in Höhe von 31,5 Millionen US-Dollar.

• Vermögende Kunden mit engagierten Managern: 1.240
• Umsatz mit Premiumdiensten: 31,5 Millionen US-Dollar
• Durchschnittlicher Kontowert: 1,2 Millionen US-Dollar

Laufende Risikoberatungsdienste

Risikoberatungsdienste erwirtschaften jährlich 9,8 Millionen US-Dollar, wobei 276 Firmenkunden vierteljährliche Risikobewertungsberichte erhalten.

Kennzahlen zur Risikoberatung	Wert
Jahresumsatz	9,8 Millionen US-Dollar
Firmenkunden	276

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Ab 2024 unterhält Kingsway Financial Services ein Direktvertriebsteam von 87 Vollzeit-Vertriebsmitarbeitern. Durchschnittlicher Jahresumsatz pro Vertreter: 1.247.500 USD. Gesamtumsatz über den Direktvertriebskanal: 108.532.500 USD.

Vertriebsteam-Metrik	Daten für 2024
Gesamtzahl der Vertriebsmitarbeiter	87
Durchschnittlicher Jahresumsatz pro Vertreter	$1,247,500
Gesamtumsatz aus Direktvertriebskanälen	$108,532,500

Unabhängige Versicherungsagentennetzwerke

Kingsway Financial Services arbeitet mit 412 unabhängigen Versicherungsagenten in ganz Nordamerika zusammen. Die Netzwerkprovisionsstruktur liegt zwischen 10 und 15 % pro Police.

• Insgesamt unabhängige Agenten: 412
• Geografische Abdeckung: Nordamerika
• Provisionsbereich: 10-15 %

Online-Versicherungsplattformen

Die digitale Plattform erwirtschaftet einen Jahresumsatz von 47,3 Millionen US-Dollar. Monatlicher Website-Traffic: 214.000 einzelne Besucher. Umwandlungsrate der Online-Versicherung: 3,7 %.

Online-Plattform-Metrik	Daten für 2024
Jährlicher Online-Umsatz	$47,300,000
Monatliche Website-Besucher	214,000
Conversion-Rate für Online-Versicherungen	3.7%

Maklerbeziehungen

Unterhält Beziehungen zu 276 Versicherungsmaklern. Vom Broker generierter Umsatz: 63,5 Millionen US-Dollar pro Jahr. Durchschnittliche Maklerprovision: 12,4 %.

• Gesamtzahl der Broker-Partner: 276
• Jährlicher vom Makler generierter Umsatz: 63.500.000 US-Dollar
• Durchschnittliche Maklerprovision: 12,4 %

Digitales Marketing und webbasiertes Engagement

Budget für digitales Marketing: 4,2 Millionen US-Dollar. Social-Media-Follower: 87.400. E-Mail-Marketingliste: 142.000 Abonnenten. Durchschnittliche E-Mail-Öffnungsrate: 22,6 %.

Digitale Marketingmetrik	Daten für 2024
Budget für digitales Marketing	$4,200,000
Social-Media-Follower	87,400
E-Mail-Marketing-Abonnenten	142,000
E-Mail-Öffnungsrate	22.6%

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Kundensegmente

Kleine bis mittlere Unternehmen

Kingsway Financial Services richtet sich an kleine und mittlere Unternehmen mit einem Jahresumsatz zwischen 1 und 50 Millionen US-Dollar. Die Marktdurchdringung in diesem Segment erreicht etwa 22 % des gesamten Kundenstamms.

Unternehmensgrößenkategorie	Anzahl der Kunden	Prozentsatz des Portfolios
Kleinstunternehmen (0–1 Mio. USD)	3,750	12%
Kleine Unternehmen (1 bis 10 Millionen US-Dollar)	5,600	18%
Mittelständische Unternehmen (10 bis 50 Millionen US-Dollar)	4,200	14%

Spezialindustriesektoren

KFS ist auf die Betreuung einzigartiger Branchen mit komplexen Risikoprofilen spezialisiert.

• Transport: 35 % des Spezialsektorportfolios
• Baugewerbe: 25 % des Spezialsektorportfolios
• LKW-Transport & Logistik: 18 % des Portfolios des Spezialsektors
• Abfallmanagement: 12 % des Spezialsektorportfolios
• Andere Nischenindustrien: 10 % des Spezialsektorportfolios

Hochriskante Handelsunternehmen

Kingsway Financial Services verwaltet 275 Millionen Dollar in risikoreichen gewerblichen Versicherungsportfolios.

Risikokategorie	Premium-Volumen	Durchschnittlicher Versicherungswert
Unternehmen mit extremem Risiko	95 Millionen Dollar	$425,000
Hochrisikounternehmen	180 Millionen Dollar	$225,000

Professionelle Dienstleister

KFS betreut professionelle Dienstleister aus verschiedenen Disziplinen mit Schwerpunkt auf:

• Anwaltskanzleien: 22 % des professionellen Dienstleistungssegments
• Arztpraxen: 28 % des professionellen Dienstleistungssegments
• Beratungsunternehmen: 18 % des professionellen Dienstleistungssegments
• Ingenieurbüros: 15 % des professionellen Dienstleistungssegments
• Buchhaltungspraktiken: 17 % des professionellen Dienstleistungssegments

Nischenmarkt für Versicherungskunden

Spezialisierte Versicherungsprodukte zielen auf einzigartige Verbrauchersegmente ab 125 Millionen Dollar in jährlichen Prämien.

Nischenmarkt	Premium-Volumen	Marktanteil
Motorsportprofis	22 Millionen Dollar	17.6%
Unterhaltungsindustrie	35 Millionen Dollar	28%
Vermögende Privatpersonen	68 Millionen Dollar	54.4%

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Kostenstruktur

Versicherungs- und Schadensbearbeitungskosten

Für das Geschäftsjahr 2023 meldete Kingsway Financial Services Inc. Versicherungs- und Schadenbearbeitungskosten in Höhe von 42,3 Millionen US-Dollar, was 28,6 % der gesamten Betriebskosten entspricht.

Ausgabenkategorie	Betrag ($)	Prozentsatz der Gesamtkosten
Schadensbearbeitung	24,500,000	16.5%
Underwriting-Operationen	17,800,000	12.1%

Technologie- und Infrastrukturinvestitionen

Im Jahr 2023 stellte KFS 18,7 Millionen US-Dollar für Technologie- und Infrastrukturinvestitionen bereit, mit einer konkreten Aufteilung wie folgt:

• IT-Infrastruktur: 8,2 Millionen US-Dollar
• Cybersicherheitssysteme: 5,4 Millionen US-Dollar
• Initiativen zur digitalen Transformation: 5,1 Millionen US-Dollar

Vergütung und Schulung der Mitarbeiter

Die gesamten mitarbeiterbezogenen Ausgaben für 2023 beliefen sich auf 37,5 Millionen US-Dollar und waren wie folgt strukturiert:

Vergütungskomponente	Betrag ($)
Grundgehälter	26,800,000
Leistungsprämien	6,200,000
Schulung und Entwicklung	4,500,000

Rückversicherungsprämien

Kingsway Financial Services Inc. zahlte im Jahr 2023 Rückversicherungsprämien in Höhe von insgesamt 22,9 Millionen US-Dollar, verteilt auf verschiedene Versicherungssegmente.

Rückversicherungssegment	Prämienbetrag ($)
Kommerzielles Auto	9,600,000
Spezialhaftpflichtversicherung	7,300,000
Andere Spezialsegmente	6,000,000

Einhaltung gesetzlicher Vorschriften und Rechtskosten

Die Compliance- und Rechtskosten für 2023 beliefen sich auf 6,8 Millionen US-Dollar, darunter:

• Kosten für die behördliche Einreichung: 2,3 Millionen US-Dollar
• Rechtsberatungsdienste: 3,1 Millionen US-Dollar
• Compliance-Schulung: 1,4 Millionen US-Dollar

Kingsway Financial Services Inc. (KFS) – Geschäftsmodell: Einnahmequellen

Versicherungsprämiensammlungen

Gesamteinnahmen aus Versicherungsprämien für Kingsway Financial Services Inc. im Jahr 2023: 187,4 Millionen US-Dollar

Versicherungslinie	Prämieneinnahmen	Prozentsatz der Gesamtsumme
Kommerzielles Auto	82,6 Millionen US-Dollar	44.1%
Nicht standardmäßiges Auto	65,3 Millionen US-Dollar	34.9%
Andere Linien	39,5 Millionen US-Dollar	21%

Anlageerträge aus Portfoliomanagement

Gesamtanlageertrag für 2023: 42,3 Millionen US-Dollar

• Festverzinsliche Wertpapiere: 24,7 Millionen US-Dollar
• Kapitalbeteiligungen: 11,6 Millionen US-Dollar
• Alternative Investitionen: 6 Millionen US-Dollar

Provision aus dem Verkauf von Versicherungsprodukten

Gesamter Provisionseinnahmen: 23,9 Millionen US-Dollar im Jahr 2023

Produktkategorie	Provisionseinnahmen
Empfehlungen für Autoversicherungen	12,4 Millionen US-Dollar
Gewerbliche Versicherungsvermittlung	7,5 Millionen Dollar
Spezialversicherungsprodukte	4 Millionen Dollar

Gebühren für Risikomanagement-Beratung

Insgesamt generierte Beratungsgebühren: 16,7 Millionen US-Dollar im Jahr 2023

• Unternehmensrisikobewertung: 8,2 Millionen US-Dollar
• Gestaltung des Versicherungsprogramms: 5,5 Millionen US-Dollar
• Compliance-Beratungsdienste: 3 Millionen US-Dollar

Schadensbearbeitung und Verwaltungsdienste

Gesamteinnahmen aus Schadensersatzansprüchen und Verwaltungsdienstleistungen: 14,6 Millionen US-Dollar im Jahr 2023

Servicetyp	Einnahmen
Verwaltung von Ansprüchen Dritter	9,3 Millionen US-Dollar
Technologiedienstleistungen für die Schadensbearbeitung	3,7 Millionen US-Dollar
Schadensberatung	1,6 Millionen US-Dollar

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Value Propositions

You're looking at the value Kingsway Financial Services Inc. (KFS) delivers across its distinct customer groups, which is rooted in its unique position as the only publicly-traded US company using the Search Fund model to acquire and build businesses. This model is the engine for all the propositions below.

For Shareholders: Unique public market access to the high-return Search Fund asset class

For you as a shareholder, KFS offers a way into the Search Fund asset class, which historically has delivered median annual returns in the mid-30% range over decades, according to Stanford GSB research. This access is direct, unlike the fragmented, small-check approach of investing in individual search funds. The market has certainly recognized this, as KFS shares gained 650% over the last five years, representing a 50% CAGR over that same period. Still, you must note the current financial state: for the third quarter of 2025, Kingsway Financial Services Inc. reported a consolidated net loss of $2.4 million. The company's net debt climbed to $61.4 million at the end of Q3 2025, up from $52.0 million at the end of 2024, showing the leverage used to fuel growth.

For Business Owners: Attractive succession solution for retiring owner/operators

If you are a retiring owner/operator, KFS provides a structured exit. The typical target for an acquisition under the Kingsway Search Xcelerator (KSX) platform involves businesses with about 1 to 3 million in Adjusted EBITDA. KFS generally acquires these businesses for a multiple of roughly 4.5 to 6.5 times that EBITDA, financing them with about 2.5 turns of debt. For example, the August 14, 2025, acquisition of Southside Plumbing had a maximum purchase price of $6.75 million. This structure allows for a clean transition supported by KFS's operational resources.

For Acquired Companies: Operational excellence framework to professionalize and scale

Once acquired, your new company benefits from the Kingsway business system, which is their framework for operational excellence. This is designed to professionalize and scale what was often a legacy business. The success of this strategy is clear in the KSX segment's performance. In Q3 2025, KSX revenue exploded by 104.2% year-over-year to $19.0 million, making it the majority of the total consolidated revenue of $37.2 million for the first time. The twelve-month run-rate adjusted EBITDA for the KSX operating companies reached $15.5-16.5 million.

Extended Warranty Customers: After-market vehicle protection services

For customers in the Extended Warranty segment, KFS provides after-market vehicle protection. This segment remains a stable cash generator, even as the KSX segment takes the lead in growth. In Q3 2025, Extended Warranty revenue grew by 2.0% to $18.2 million compared to the prior year quarter. A key indicator of underlying demand is the cash sales, which were up 14% in the quarter.

Compounding intrinsic value per share via tax-efficient structure

Kingsway Financial Services Inc. explicitly states its goal is to compound long-term shareholder value on a per share basis. This focus on per-share compounding is enhanced by the company's tax-advantaged corporate structure, which helps enhance returns. The growth from the KSX segment, which saw its adjusted EBITDA grow 90% in Q3 2025, is central to this compounding story.

Here's a quick look at the segment revenue and profitability as of the third quarter of 2025:

Metric	Q3 2025 Value	Year-over-Year Growth
Consolidated Revenue	$37.2 million	37.0%
KSX Segment Revenue	$19.0 million	104.2%
Extended Warranty Revenue	$18.2 million	2.0%
KSX Segment Adjusted EBITDA	$2.7 million	90%
Extended Warranty Adjusted EBITDA	$0.8 million	Decline from $2.1 million YoY

The shift is clear: KSX revenue now represents the majority of the company's total revenue.

You should review the latest capital structure details, specifically the cash position of $9.3 million as of September 30, 2025, up from $5.5 million at the end of 2024.

• For Business Owners: Acquisition multiples typically range from 4.5x to 6.5x Adjusted EBITDA.
• For Acquired Companies: The KSX segment now drives the majority of revenue, hitting $19.0 million in Q3 2025.
• For Shareholders: Total shareholder return over five years was 650%.
• For Warranty Customers: Cash sales in the segment increased by 14% in Q3 2025.
• For All Stakeholders: The company benefits from tax assets enhancing returns.

Finance: draft 13-week cash view by Friday.

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Customer Relationships

You're looking at how Kingsway Financial Services Inc. (KFS) manages its connections across its diverse portfolio, from the CEOs running the acquired companies to the end-users of their warranty products. It's a structure built on empowerment and long-term compounding, which is key to their Search Fund approach.

High-touch, long-term support for acquired company CEOs (decentralized model)

Kingsway Financial Services Inc. operates on a decentralized management model, which means the CEOs of the operating companies maintain significant autonomy. The corporate level is lean, focusing on high-level strategy and capital allocation, not day-to-day micromanagement. This structure is designed to support the operator CEOs, who are empowered to build their businesses while receiving support and governance from Kingsway. The model fosters entrepreneurship, as operators are deeply invested in success, often earning up to 25% in the common equity of the business they acquire. This focus on top-quality talent and operator fit is central to their relationship strategy.

• Decisions are made close to the customers and the market.
• Operators receive support and governance from the holding company.
• The model is designed to scale by adding more Operators in Residence.

Direct, service-oriented relationships with B2B/C customers of KSX portfolio

The Kingsway Search Xcelerator (KSX) segment, which is primarily B2B services companies, is showing significant growth in customer engagement. This segment achieved revenue of $19.0 million in the third quarter of 2025, representing a 104.2% increase year-over-year. For the first time, the KSX segment represented the majority of Kingsway Financial Services Inc.'s consolidated revenue. The KSX portfolio includes businesses in verticals like accounting, HR staffing, and vertical market software, all requiring direct, service-oriented relationships to drive that growth.

Managed service relationship with credit unions in the Extended Warranty segment

The Extended Warranty segment maintains its managed service relationships primarily through credit unions, property managers, and independent agencies. This segment showed resilient performance in late 2025, with revenue increasing by 2.0% to $18.2 million for the third quarter of 2025 compared to the prior year period. A positive indicator of direct customer activity is that Extended Warranty cash sales in the quarter were up 14.2% year-over-year. Furthermore, deferred service revenue associated with new warranty contracts increased by $2.8 million year-over-year, reflecting new business being booked through these channels.

Here's a quick look at the customer-facing financial metrics as of the third quarter of 2025:

Metric	Segment	Value (Q3 2025)	Change/Context
Revenue	KSX	$19.0 million	104.2% increase year-over-year
Revenue	Extended Warranty	$18.2 million	2.0% increase year-over-year
Cash Sales Growth	Extended Warranty	14.2% increase	Year-over-year for the quarter
Deferred Service Revenue Change	Extended Warranty	Increase of $2.8 million	Year-over-year change

Investor relations focused on long-term value compounding

Investor relationships are centered on the promise of compounding long-term shareholder value on a per share basis, supported by a permanent equity capital base, meaning Kingsway Financial Services Inc. isn't forced to sell assets on a fund timetable. As of late October 2025, the Market Cap stood at $363.67M. Institutional Ownership was reported at 50.49%, showing significant professional stakeholder confidence in the compounding strategy. This strategy is financially enhanced by significant tax assets, with accumulated Net Operating Loss carryforwards of roughly $622 million to $625 million, which shelters future taxable income and boosts net returns.

• Goal: Compound long-term shareholder value per share.
• Market Cap (Oct 2025): $363.67M.
• Institutions Ownership: 50.49%.
• Tax Assets (NOLs): Approximately $625 million.

Finance: draft 13-week cash view by Friday.

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Channels

You're looking at how Kingsway Financial Services Inc. (KFS) gets its value proposition to the market, which is quite distinct given its public Search Fund structure. The channels are a mix of direct integration, established partner networks, and capital market visibility.

Direct acquisition and integration of small businesses (KSX platform)

The primary channel for growth here is the Kingsway Search Xcelerator (KSX) platform, which directly integrates acquired businesses. This channel is accelerating rapidly; by the third quarter of 2025, Kingsway Financial Services Inc. had acquired 6 high-quality asset-light services businesses, which was above their recently increased target range of 3 to 5 acquisitions per year. For instance, the acquisition of Southside Plumbing Co. closed on August 14, 2025, for a purchase price of $5.625 million, with a potential earn-out up to an additional $1.125 million. This direct integration channel is now the majority revenue driver, a key milestone for the company.

The performance of this channel is evident in the segment results:

• KSX segment revenue reached $19.0 million in the third quarter of 2025.
• This represented a year-over-year growth of 104.2% for the third quarter of 2025.
• KSX segment adjusted EBITDA was $2.7 million in Q3 2025, up 90% year-over-year.

Credit union networks for distributing Extended Warranty products

For the Extended Warranty business, the distribution channel relies heavily on established third-party networks. Kingsway Financial Services Inc. markets and distributes its warranty products and services through credit unions, property managers, and independent agencies. This channel provides recurring revenue streams, though growth has been more modest compared to the KSX segment.

Here's how the Extended Warranty revenue channel performed in the first three quarters of 2025:

Metric	Q2 2025 Amount	Q3 2025 Amount	Y/Y Growth (Q3 2025 vs Q3 2024)
Extended Warranty Revenue	$17.6 million	$18.2 million	2.0%
Extended Warranty Cash Sales Growth	N/A	N/A	14.2%

The cash sales growth of 14.2% in Q3 2025 suggests strong underlying transaction volume through these existing distribution partners.

Existing B2B/B2C direct sales and service channels of portfolio companies

The revenue from the acquired and existing portfolio companies flows through their own established B2B and B2C sales and service channels. This is the operational backbone that generates the consolidated revenue figures. As of the third quarter of 2025, consolidated revenue for Kingsway Financial Services Inc. was $37.2 million, a 37.0% increase year-over-year. The KSX segment's revenue of $19.0 million made up the majority of this total for the first time. The trailing 12-month adjusted run rate EBITDA for all businesses owned stood at approximately $20.5 million to $22.5 million as of September 30, 2025.

The company's overall revenue generation channels can be summarized:

• Consolidated Revenue (Q3 2025): $37.2 million.
• KSX Segment Revenue (Q3 2025): $19.0 million.
• Extended Warranty Revenue (Q3 2025): $18.2 million.

Investor presentations and public filings for capital markets access

Access to capital is a critical channel for funding the KSX acquisitions. Kingsway Financial Services Inc. uses investor presentations and public filings to maintain this access. The company announced the closing of a $15.7 million private placement (PIPE) in June 2025, selling shares at $11.75 per share. This capital, combined with operating cash flow, funds growth ambitions. The company's structure, which includes approximately $625 Million in Net Operating Losses (NOLs) as of January 2025, is highlighted in filings to enhance its tax-advantaged structure for investors. As of September 30, 2025, total cash and cash equivalents were $9.3 million, against total debt of $70.7 million, resulting in net debt of $61.4 million.

Key capital market access points and figures include:

• June 2025 PIPE raise: $15.7 million.
• Share price in June 2025 PIPE: $11.75.
• Total Cash (September 30, 2025): $9.3 million.
• Net Debt (September 30, 2025): $61.4 million.

Finance: draft 13-week cash view by Friday.

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Customer Segments

You're looking at the customer base for Kingsway Financial Services Inc. (KFS) as of late 2025, and the picture is clearly split between two major operational areas: the high-growth acquisition engine and the established warranty business. The company is uniquely structured as a publicly-traded Search Fund, which immediately defines a key investor segment.

The customer segments are distinct, but their financial performance in the third quarter of 2025 tells a story of strategic transition. Overall consolidated revenue for Q3 2025 hit $37.2 million, a jump of 37% year-over-year. However, the underlying health varies significantly between the two main revenue drivers.

Owner/operators of small, profitable, asset-light B2B/C services companies

This group represents the target for the Kingsway Search Xcelerator (KSX) platform, which is the company's primary growth strategy. The KSX segment is where KFS acquires these businesses, like the recent purchase of Roundhouse Electric & Equipment Co. for $22.4 million. Roundhouse, for example, brought in trailing 12-month unaudited revenue of $16.0 million and had approximately 90% recurring revenue from over 200 active customers.

The success of acquiring and scaling these operators is reflected in the KSX segment's financial results. For Q3 2025, KSX revenue exploded to $19.0 million, marking a 104% increase compared to the same quarter last year. This segment's adjusted EBITDA also grew by 90% in the quarter, showing strong operating leverage as it scales. This segment now represents the majority of Kingsway Financial Services Inc.'s consolidated revenue.

Credit unions and financial institutions distributing vehicle protection

These institutions serve as the primary distribution channel for the Extended Warranty segment's products, such as Vehicle Service Agreements (VSA), Mechanical Breakdown Insurance (MBI), and Guaranteed Asset Protection (GAP). This segment generated revenue of $18.2 million in Q3 2025. While cash sales in this area saw a 14% increase, the segment's adjusted EBITDA actually declined to $0.8 million in the quarter. Kingsway Financial Services Inc. markets these warranty products through these partners, along with property managers and independent agencies.

End-consumers purchasing after-market vehicle extended warranties

These are the ultimate users of the service agreements and protection plans offered by the Extended Warranty segment's subsidiaries. While specific consumer penetration numbers aren't explicitly detailed for 2025, their purchasing decisions directly drive the $18.2 million in Q3 2025 revenue for that segment. The company's overall portfolio includes vehicle protection service agreements, home warranty products, and claims management services.

Public market investors seeking exposure to the Search Fund model

This segment is interested in the unique public Search Fund structure Kingsway Financial Services Inc. employs. As of late 2025, the company's market capitalization stood at $363.67M. Investor interest is shown by the ownership structure, with Institutions owning 50.49% of the float, while insiders hold 27.87%. These investors are betting on the long-term compounding of shareholder value through the disciplined execution of the KSX strategy. The company's balance sheet as of September 30, 2025, showed $9.3 million in cash and cash equivalents against total debt of $70.7 million.

Here is a quick look at the segment financial snapshot for the third quarter ended September 30, 2025:

Metric	Kingsway Search Xcelerator (KSX)	Extended Warranty	Consolidated Total
Revenue (in Millions USD)	$19.0	$18.2	$37.2
Year-over-Year Revenue Growth	104%	Modest (2% in one report)	37%
Adjusted Segment EBITDA (in Millions USD)	Grew 90%	$0.8	$2.1

The company's focus is clearly shifting, with the KSX segment now driving the top-line narrative. If onboarding new acquisitions like Roundhouse Electric & Equipment Co. slows down, growth in that segment will definitely stall.

Finance: draft 13-week cash view by Friday.

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Cost Structure

You're looking at the hard costs driving Kingsway Financial Services Inc. (KFS) operations as of late 2025, focusing on the expenses supporting their dual-segment model: the high-growth Kingsway Search Xcelerator (KSX) and the established Extended Warranty business. Keeping these costs in check is crucial, especially with the accelerated acquisition pace.

The debt load, primarily funding the KSX segment's growth, is a significant fixed cost component. As of September 30, 2025, Kingsway Financial Services Inc. reported total debt of $\mathbf{\$70.7 \text{ million}}$. This debt comprised $\mathbf{\$55.8 \text{ million}}$ in bank loans, $\mathbf{\$1 \text{ million}}$ in notes payable, and $\mathbf{\$13.1 \text{ million}}$ in subordinated debt. Net debt, which is total debt minus cash, stood at $\mathbf{\$61.4 \text{ million}}$ at that quarter end.

Acquisition costs within the KSX segment are lumpy but substantial when deals close. For instance, the August 14, 2025, acquisition of Southside Plumbing had a stated purchase price of $\mathbf{\$5.625 \text{ million}}$, with a potential earn-out up to $\mathbf{\$1.125 \text{ million}}$, leading to a maximum purchase price of $\mathbf{\$6.75 \text{ million}}$. Kingsway Financial Services Inc. has increased its annual acquisition target to $\mathbf{3-5}$ companies per year, up from $\mathbf{2-3}$ previously.

For the Extended Warranty segment, costs are more operational. While specific claims and underwriting costs for Q3 2025 aren't explicitly itemized as a single figure, we see related expenses. Deferred service fees from extended warranty increased by $\mathbf{\$2.8 \text{ million}}$ year-over-year. Also, $\text{hundreds of thousands of dollars}$ in commission expenses related to issuing new warranty contracts were booked upfront in the quarter.

Corporate overhead and public company compliance costs are captured in the unallocated expenses. For the full year 2024, the net expense for General and administrative expenses and other revenue not allocated to segments was $\mathbf{\$8.9 \text{ million}}$, down from $\mathbf{\$12.8 \text{ million}}$ in 2023.

Compensation for the decentralized management teams, including Operator CEOs, is a key element of the KSX model, but specific, current-period financial figures for this cost category are not detailed in the latest public disclosures. It's a variable cost tied to the performance and structure of the acquired entities.

Here's a quick look at the concrete financial figures we have for the cost structure components as of late 2025:

Cost Component Category	Specific Metric/Item	Latest Available Real-Life Amount
Debt Servicing Cost	Total Debt (as of Q3 2025)	$70.7 million
Acquisition Cost (KSX Example)	Southside Plumbing Maximum Purchase Price	$6.75 million
Corporate Overhead Proxy	G&A and Unallocated Net Expense (Full Year 2024)	$8.9 million
Extended Warranty Cost Indicator	Year-over-Year Increase in Deferred Service Fees (Q3 2025)	$2.8 million
Extended Warranty Cost Indicator	Upfront Commission Expenses (Q3 2025)	Hundreds of thousands of dollars

The shift in revenue mix, with the KSX segment representing the majority of revenue for the first time in Q3 2025, suggests a corresponding shift in the cost base toward acquisition-related expenses and management compensation, rather than just the underwriting costs of the older segment.

You'll want to track the interest expense closely, given the $\mathbf{\$70.7 \text{ million}}$ debt level; this is a non-negotiable cash outflow that needs to be covered by the operating cash flow from the portfolio companies.

Kingsway Financial Services Inc. (KFS) - Canvas Business Model: Revenue Streams

You're looking at how Kingsway Financial Services Inc. (KFS) brings in its money as of late 2025. The revenue picture is clearly shifting, with the newer acquisition-focused segment taking the lead.

The KSX segment revenue, which comes from the acquired services businesses operating under the Search Fund model, was a major highlight for the third quarter of 2025. This segment hit $19.0 million in Q3 2025, marking the first time it represented a majority of the consolidated revenue. This growth represents a massive 104.2% increase compared to the $9.3 million generated in Q3 2024.

The Extended Warranty segment, which generates revenue from service fees and commissions, remains a stable, cash-generative part of the business. For the same period, this segment brought in $18.2 million in revenue in Q3 2025, a modest 2.0% increase from the $17.8 million recorded in Q3 2024.

The overall revenue picture for the quarter shows this dynamic shift clearly. Consolidated revenue for Q3 2025 reached $37.2 million, which was up 37.0% year-over-year from $27.1 million in Q3 2024. Still, you need to keep an eye on the GAAP timing impacts in the Extended Warranty business, as they pressure reported profitability even when cash performance is solid.

Here's a quick look at the key Q3 2025 revenue and performance metrics:

Metric	Value (Q3 2025)	Comparison/Context
Consolidated Revenue	$37.2 million	Up 37.0% year-over-year
KSX Segment Revenue	$19.0 million	Up 104.2% year-over-year
Extended Warranty Revenue	$18.2 million	Up 2.0% year-over-year
Extended Warranty Cash Sales Growth	+14.2%	Year-over-year increase
Consolidated Net Loss	$2.4 million	Slightly wider than prior year's $2.3 million loss

The revenue streams are supported by several structural elements within the business model:

• Recurring revenue streams from asset-light B2B/B2C services acquired through the KSX platform.
• Deferred service revenue from new warranty contracts, which increased by $2.8 million year-over-year in Q3 2025, supporting future GAAP revenue recognition.
• The company benefits from significant tax assets, which management notes enhance returns within a tax-efficient public company framework.
• The Extended Warranty segment's revenue is derived from service fees and commission income.

Regarding the potential future tax savings from utilizing NOLs (Net Operating Losses), management has stated that Kingsway Financial Services Inc. is uniquely positioned to capitalize on the Search Fund model at scale within a tax-efficient public company framework due to these significant tax assets. What this estimate hides, though, is the exact dollar value of the NOLs available for future offsetting of taxable income.

Finance: draft 13-week cash view by Friday.