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BALDWIN & LYONS, INC., REPORTS UNAUDITED SECOND QUARTER RESULTS

 INDIANAPOLIS, July 26 /PRNewswire/ -- Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today announced net income from operations for the second quarter ended June 30, 1993, of $5.5 million or $1.05 per share, compared to $5.4 million, or $1.02 per share, for the second quarter of 1992. The second quarter 1993 results included net capital gains of $1.2 million or $.22 per share, compared to $.02 per share for the 1992 second quarter. Federal tax credits resulting from the "fresh start" provisions of the 1986 Tax Reform Act added $.02 per share during the current quarter compared to $.04 per share for the second quarter of 1992. After adjusting for capital gains and the effects of fresh start, net operating income for the second quarter of 1993 was $4.2 million, or $.81 per share, compared to $5.1 million, or $.96 per share, for the second quarter of 1992.
 For the six months ended June 30, 1993, operating income was $10.3 million, or $1.98 per share compared to $10.3 million, or $1.93 per share, for the first six months of 1992. Net capital gains included in operations were $.43 per share in the 1993 period compared to $.22 per share a year earlier. Fresh start credits totaled $.3 million for the first six months of 1993 ($.05 per share) and were $.4 million ($.08 per share) in the comparable 1992 period. Net operating income for the six months ended June 30, 1993, after adjustment for capital gains and fresh start, was $7.9 million, or $1.51 per share, and compares to $9.0 million, or $1.69 per share, for the first six months of 1992.
 Net premiums earned by the company's insurance subsidiaries during the second quarter totaled $18.7 million compared to $16.6 million during the second quarter of 1992. The higher premium is attributable to increases in Indiana general lines premium of $1.0 million and voluntary reinsurance assumed of $.9 million. Marginal increases in trucking premiums were offset by decreases in residual market assumed allocations from the National Worker's Compensation Pool. On a year-to- date basis, 1993 premiums earned of $36.2 million are 5 percent lower than the $37.9 million earned in the 1992 period. The decreased premium volume is attributable to decreases in retrospectively rated worker's compensation premiums totaling $4.9 million which have been replaced by a new large deductible worker's compensation program. This decrease was partially offset by a $2.1 million increase in Indiana general lines business and a $1.3 million increase in voluntary assumptions under catastrophe pool treaties.
 Investment income declined by 18 percent and 16 percent for the quarter and year to date, respectively reflecting lower yields in the company's short-term portfolio, the purchase of tax free municipal bonds and a reduction in dividend income from common stocks held by the company.
 The consolidated combined ratio for the second quarter of 1993 was 92.5 percent producing a $1.4 million underwriting gain. This compares to a $2.1 million gain on a combined ratio of 87.6 percent for the second quarter of 1992. On a year to date basis, the consolidated combined ratio for 1993 was 94.5 compared to 93.5 percent for the first six months of 1992. The second quarter of 1992 was favorably impacted by a non-recurring $1 million subrogation recovery.
 Including the effect of a $.7 million increase in unrealized net gains on investments, shareholders' equity increased $9.7 million from Dec. 31, 1992 and totals $187.6 million at June 30, 1993. Book value per common share outstanding increased 5.4 percent, or $1.86, during the six months to $36.09 at June 30, 1993.
 Financial Highlights (unaudited)
 Baldwin & Lyons, Inc. and Subsidiaries
 (In thousands, except per share data)
 Three Months Ended
 June 30,
 1993 1992
 Revenue $24,613 $21,910
 Income from operations
 before realized capital
 transactions $ 4,352 $ 5,299
 Realized net gains on
 investments net of
 federal income taxes 1,158 94
 Non-operating loss (21) (1)
 Cumulative effect of change
 in accounting method -
 FAS No. 109 (loss) -- --
 Net income $ 5,489 $ 5,392
 Per share data:
 Average number of shares 5,197 5,304
 Income from operations
 before realized capital
 transactions $.81 $.96
 Realized net gains
 on investments .22 .02
 Fresh start tax benefits .02 .04
 Non-operating loss -- --
 Cumulative effect of change
 in accounting method -
 FAS No. 109 (loss) -- --
 Net income $1.05 $1.02
 Dividends paid $.125 $.075
 Annualized return on average
 shareholders' equity
 (net income) 11.9 pct. 13.1 pct.
 Consolidated combined ratio of
 insurance subsidiaries
 (GAAP basis) 92.5 pct. 87.6 pct.
 Six Months Ended
 June 30,
 1993 1992
 Revenue $48,162 $49,966
 Income from operations
 before realized capital
 transactions $ 8,140 $ 9,455
 Realized net gains on
 investments net of
 federal income taxes 2,240 1,189
 Non-operating loss (75) (18)
 Cumulative effect of change
 in accounting method -
 FAS No. 109 (loss) -- (322)
 Net income $10,305 $10,304
 Per share data:
 Average number of shares 5,197 5,330
 Income from operations
 before realized capital
 transactions $1.51 $1.69
 Realized net gains
 on investments .43 .22
 Fresh start tax benefits .05 .08
 Non-operating loss (.01) --
 Cumulative effect of change
 in accounting method -
 FAS No. 109 (loss) -- (.06)
 Net income $1.98 $1.93
 Dividends paid $ .25 $ .15
 Annualized return on average
 shareholders' equity
 (net income) 11.3 pct. 12.7 pct.
 Consolidated combined ratio of
 insurance subsidiaries
 (GAAP basis) 94.5 pct. 93.5 pct.
 -0- 7/26/93
 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/
 (BWINA BWINB)


CO: Baldwin & Lyons, Inc. ST: Indiana IN: INS SU: ERN

AR -- CL021 -- 5815 07/26/93 15:27 EDT
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Date:Jul 26, 1993
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