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BALDWIN & LYONS, INC. REPORTS RESULTS OF FOURTH QUARTER

 BALDWIN & LYONS, INC. REPORTS RESULTS OF FOURTH QUARTER
 INDIANAPOLIS, Feb. 11 /PRNewswire/ -- Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today announced net income from operations for the fourth quarter ended Dec. 31, 1991 of $4.7 million, or $.87 per share, compared to $3.7 million, or $.70 per share, for the fourth quarter of 1990. The fourth quarter 1991 results included realized net capital gains of $.25 per share, compared to net capital losses of $.06 per share a year earlier, and "fresh start" federal tax credits totalling $.08 per share, compared to credits of $.02 per share during the fourth quarter of 1990. After adjusting for capital gains and the effects of fresh start, net operating income for the fourth quarter of 1991 was $2.9 million, or $.54 per share, compared to $3.9 million, or $.74 per share, for the fourth quarter of 1990. Operating income for the final quarter of 1991 was reduced by approximately $.18 per share as the result of a reevaluation in asset value by the company's unconsolidated real estate subsidiary to reflect current market conditions.
 For the year ended Dec. 31, 1991, operating income totaled $19.2 million, or $3.58 per share compared to $15.4 million, or $2.82 per share, for 1990. Realized capital gains included in operations were $.62 per share in 1991 compared to losses of $.11 per share for 1990. Fresh start credits totaled $1.0 million for 1991 ($.18 per share) and were $.3 million ($.06 per share) in 1990. Net operating income for the year ended Dec. 31, 1991, after adjustment for capital gains and fresh start, was $15.0 million, or $2.79 per share, compared to $15.7 million, or $2.87 per share, for 1990.
 Net premiums earned by the company's insurance subsidiaries during the fourth quarter totaled $27.4 million compared to $23.1 million during the fourth quarter of 1990. On a year-to-date basis, 1991 premiums earned of $93.6 million are 10 percent higher than the $85.1 million earned during 1990, due principally to increases in retro workers' compensation and other "cost-plus" programs, general lines business and reinsurance assumed.
 The consolidated combined ratio for the fourth quarter of 1991 was 100.4 percent producing an underwriting loss of $.1 million. This compares to a $.3 million underwriting gain on a combined ratio of 98.6 percent for the fourth quarter of 1990. On a year-to-date basis, the consolidated combined ratio for 1991 was 99.8 percent compared to 99.9 percent for 1990. Current year underwriting results were adversely impacted by an unexpected $1.1 million adjustment to residual market workers' compensation reserves reported in the first quarter by the National Workers' Compensation Pool. While the company has no control over the operations of the pool, it must share ratably in paying for the losses sustained. The company's share of the total reserve adjustment of $1.4 billion resulted in an additonal 1.2 points on the company's year-to-date combined ratio and reduced net income for the year by nearly $.14 per share.
 The arbitration proceedings related to the reinsurance dispute between the company and National Reinsurance Corporation were concluded in late January 1992. The arbitration panel awarded the company $15.2 million which represents the reinsurance recoverables due the company from National Reinsurance Corporation and subject to the arbitration. If the award is not challenged, the company expects prompt payment with no resulting effect on its financial statements.
 Shareholders' equity increased $28.4 million from Dec. 31, 1990, which included a decrease of $10.7 million in unrealized losses in the company's investment portfolio. Shareholders' equity totals $160.7 million at Dec. 31, 1991, which equates to $29.98 per outstanding share, an increase of $5.25 during the year.
 The company plans to mail its 1991 annual report to shareholders, along with proxy statements, on April 1, 1992.
 FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended
 Baldwin & Lyons, Inc. and Subsidiaries December 31,
 1991 1990
 (In thousands, except per share data)
 Revenue $34,901 $28,107
 Income from operations before realized
 capital transactions $3,325 $4,057
 Realized net gains (losses) on investments
 net of federal income taxes 1,353 (328)
 Nonoperating income (loss) 19 (1)
 Net income $4,697 $3,728
 Per share data:
 Average number of shares 5,360 5,346
 Income from operations before realized
 capital transactions $0.54 $0.74
 Realized net gains (losses) on
 investments 0.25 (0.06)
 Fresh start tax benefits 0.08 0.02
 Nonoperating income (loss) -- --
 Net income $0.87 $0.70
 Dividends paid $0.075 $0.075
 Return on average shareholders' equity
 (net income) (percent) 11.9 11.4
 Consolidated combined ratio of insurance
 subsidiaries (GAAP basis)(percent) 100.4 98.6
 Twelve Months Ended
 December 31,
 1991 1990
 (In thousands, except per share data)
 Revenue $120,036 $106,021
 Income from operations before realized
 capital transactions $15,942 $16,041
 Realized net gains (losses) on investments
 net of federal income taxes 3,313 (605)
 Nonoperating income (loss) (58) --
 Net income $19,197 $15,436
 Per share data:
 Average number of shares 5,356 5,465
 Income from operations before realized
 capital transactions $2.79 $2.87
 Realized net gains (losses) on
 investments 0.62 (0.11)
 Fresh start tax benefits 0.18 0.06
 Nonoperating income (loss) (0.01) --
 Net income $3.58 $2.82
 Dividends paid $0.300 $0.300
 Return on average shareholders' equity
 (net income) (percent) 13.1 11.4
 Consolidated combined ratio of insurance
 subsidiaries (GAAP basis)(percent) 99.8 99.9
 -0- 2/11/92
 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/
 (BWINB) CO: Baldwin & Lyons, Inc. ST: Indiana IN: INS SU: ERN


CG -- CL008 -- 8783 02/11/92 11:53 EST
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Date:Feb 11, 1992
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