Baldwin & Lyons Announces Record Results for the Quarter
INDIANAPOLIS, May 2, 2013 (GLOBE NEWSWIRE) -- Baldwin & Lyons, Inc.
(Nasdaq:BWINA) (Nasdaq:BWINB) today announced after tax operating income,
defined as net income before investment gains and losses, of $5.6 million, or
$.38 per share, for the first quarter of 2013. This compares to after tax
operating income of $8.0 million, or $.54 per share, during the first quarter
of 2012, which was a record quarter for the Company. Net investment gains for
the first quarter of 2013, which include both realized and unrealized gains in
the Company's limited partnership investments, were $9.3 million after tax, or
$.62 per share, compared to $3.5 million, or $.24 per share, in the same
quarter of 2012. In total, after tax net income was a first quarter record
$14.9 million, or $1.00 per share and compares to $11.5 million, or $.78 per
share, for the prior year's first quarter.
Premiums written by the Company's insurance subsidiaries for the current
quarter totaled $83.9 million, a decrease of 7% when compared to the prior
year first quarter. The decrease resulted from the Company's planned and
announced strategic reduction in property exposure, including withdrawal from
the Florida commercial multi-peril market, begun in mid-2012 and reductions in
property assumed business initiated early in 2012. The decrease was partially
offset by increased volume from core fleet transportation and professional
liability products as well as an increase in casualty reinsurance volume.
After accounting for unearned premium changes and the differences in
reinsurance ceded rates on product mix, net premium earned of $61.1 million
for the first quarter of 2013 was less than 1% lower than the premium earned
in the first quarter of 2012.
The Company's consolidated combined ratio for the first quarter was 90.7%,
before consideration of fee income. Including fee income, underwriting income
was $6.3 million, producing a combined ratio of 89.9%. The Property and
Casualty Insurance segment combined ratio was 98.1% without fees and 96.9%,
including fee income. The Reinsurance segment combined ratio was 63.9%
reflecting an uneventful first quarter with respect to property losses.
Pre-tax investment income was level with the first quarter of 2012 while
average funds invested increased nearly 6%. After tax investment income was
lower by 2% reflecting a slightly lower proportion of tax exempt income.
For the 15^th consecutive quarter, the company had positive cash flow, which
this quarter totaled $12.3 million.
Book value per share increased $.79 per share during the first quarter, after
the payment of $.25 per share in regular cash dividends, with the combination
of the increase in book value and dividends representing a 4.5% total return
for the quarter on beginning book value.
Conference Call Information:
Baldwin & Lyons, Inc. has scheduled a conference call for Thursday, May 2,
2013, at 11:00 AM ET (New York time) to discuss results for the first quarter
ended March 31, 2013.
To participate via teleconference, investors may dial 1-888-430-8705
(U.S./Canada) or 1-719-325-2329 (International or local) at least five minutes
prior to the beginning of the call.A replay of the call will be available
through May 9, 2013 by calling 1-877-870-5176 or 1-858-384-5517 and
referencing passcode 2417095.Investors and interested parties may also listen
to the call via a live webcast, accessible on the company's web site via a
link at the top of the main Investor Relations page.To participate in the
webcast, please register at least fifteen minutes prior to the start of the
call.The webcast will be archived on this site until May 2, 2014.The webcast
may be accessed directly at: http://public.viavid.com/index.php?id=102928
Also available on the investor relations section of our web site are complete
interim financial statements and copies of our filings with the Securities and
Financial Highlights (unaudited)
Baldwin & Lyons, Inc. and Subsidiaries
(In thousands, except per share data) Three Months Ended
Operating revenue $64,891 $65,479
Net investment gains (losses) 14,347 5,381
Total revenue $79,238 $70,860
Operating income $5,617 $8,008
Net investment gains, net of federal income taxes 9,326 3,498
Net income $14,943 $11,506
Per share data - diluted:
Average number of shares 14,911 14,842
Operating income $.38 $.54
Net investment gains .62 .24
Net income $1.00 $.78
Dividends paid to shareholders $.25 $.25
Annualized return on average shareholders' equity:
Operating income 7.1% 10.8%
Net income 18.9% 15.5%
Consolidated combined ratio of insurance subsidiaries (GAAP
Without fee income 90.7% 86.4%
Including fee income 89.9% 85.5%
Forward-looking statements in this report are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.Investors
are cautioned that such forward-looking statements involve inherent risks and
uncertainties.Readers are encouraged to review the Company's annual report
for its full statement regarding forward-looking information.
CONTACT: Press Contact: G. Patrick Corydon
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