BALDWIN & LYONS, INC. ANNOUNCES SECOND QUARTER RESULTS
BALDWIN & LYONS, INC. ANNOUNCES SECOND QUARTER RESULTS INDIANAPOLIS, July 30 /PRNewswire/ -- Baldwin & Lyons, Inc.
(NASDAQ: BWINA,BWINB) today announced net income from operations for the second quarter ended June 30, 1992 of $5.4 million, or $1.02 per share, compared to $5.1 million, or $.94 per share, for the second quarter of 1991. The second quarter 1992 results included net capital gains of $.1 million, or $.02 per share, compared to $.15 per share for the 1991 second quarter. Federal tax credits resulting from the "fresh start" provisions of the 1986 Tax Reform Act added $.04 per share during each of the quarterly periods. After adjusting for capital gains and the effects of fresh start, net operating income for the second quarter of 1992 was a record $5.1 million, or $.96 per share, compared to $4.0 million, or $.75 per share, for the second quarter of 1991.
For the six months ended June 30, 1992, operating income was a record $10.6 million, or $1.99 per share compared to $8.9 million, or $1.65 per share, for the first six months of 1991. Net capital gains included in operations were $.22 per share in the 1992 period compared to $.19 per share a year earlier. Fresh start credits totaled $.4 million for the first six months of 1992 ($.08 per share) and were $.3 million ($.06 per share) in the comparable 1991 period. Net operating income for the six months ended June 30, 1992, after adjustment for capital gains and fresh start, was $9.0 million, or $1.69 per share, again a record, and compares to $7.5 million, or $1.40 per share, for the first six months of 1991. Net premiums earned by the company's insurance subsidiaries during the second quarter totaled $16.6 million compared to $22.0 million during the second quarter of 1991. The decreased premium volume is primarily attributable to decreases in retrospectively-rated worker's compensation premiums which are being replaced by a new large deductible worker's compensation program. This new program will generate lower gross premium volume, but most claims will be charged to the insured and the amount received by the company for risk incurred and services performed will be nearly the same. On a year-to-date basis, 1992 premiums earned of $37.9 million are 9 percent lower than the $41.5 million earned in the 1991 period for the same reason. The consolidated combined ratio for the second quarter of 1992 was 87.6 percent producing a $2.1 million underwriting gain. This compares to a $.5 million gain on a combined ratio of 97.9 percent for the second quarter of 1991. On a year-to-date basis, the consolidated combined ratio for 1992 was 93.5 percent compared to 100.9 percent for the first six months of 1991. The prior year underwriting results were adversely impacted by a $1.1 million adjustment to residual market workers' compensation reserves reported to the company by the National Workers' Compensation Pool. The second quarter of 1992 was favorably impacted by a $1 million subrogation recovery as well as significantly improved underwriting results by Hoosier Insurance Company, the company's general lines subsidiary. Hoosier's combined ratio for the second quarter of 1992 decreased to 92.2 percent from 131.7 percent a year earlier. Including the effect of a $1.9 million increase in unrealized losses on investments and $4.5 million in additional treasury stock purchases, shareholders' equity increased $3.5 million from Dec. 31, 1991 and totals $164.2 million at June 30, 1992. Book value per common share outstanding increased 5.1 percent, or $1.54, during the six months to $31.52 at June 30, 1992. Financial Highlights (unaudited) Baldwin & Lyons, Inc. and Subsidiaries (In thousands, except per share data) Three Months Ended June 30, 1992 1991 Revenue $21,910 $28,509 Income from operations before realized capital transactions $ 5,298 $ 4,267 Realized net gains on investments net of federal income taxes 94 791 Net income $ 5,392 $ 5,058 Per share data: Average number of shares 5,304 5,356 Income from operations before realized capital transactions $ .96 $ .75 Realized net gains on investments .02 .15 Fresh start benefits .04 .04 Net income $1.02 $ .94 Dividends paid $.075 $.075 Annualized return on average shareholders' equity (net income) 13.1 pct. 13.7 pct. Consolidated combined ratio of insurance subsidiaries (GAAP basis) 87.6 pct. 97.9 pct. Six Months Ended June 30, 1992 1991 Revenue $49,966 $53,839 Income from operations before realized capital transactions $ 9,437 $ 7,841 Realized net gains on investments net of federal income taxes 1,189 1,017 Net income $10,626 $ 8,858 Per share data: Average number of shares 5,330 5,354 Income from operations before realized capital transactions $1.69 $1.40 Realized net gains on investments .22 .19 Fresh start benefits .08 .06 Net income $1.99 $1.65 Dividends paid $.150 $.150 Annualized return on average shareholders' equity (net income) 13.1 pct. 12.5 pct. Consolidated combined ratio of insurance subsidiaries (GAAP basis) 93.5 pct. 100.9 pct. -0- 7/30/92 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/ (BWINA BWINB) CO: Baldwin & Lyons, Inc. ST: Indiana IN: INS SU: ERN
BM -- CL020 -- 5208 07/30/92 15:14 EDT
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|Date:||Jul 30, 1992|
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