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BALDWIN & LYONS, INC. UNAUDITED FIRST QUARTER REPORT

 INDIANAPOLIS, April 27 /PRNewswire/ -- Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today announced net income from operations for the first quarter ended March 31, 1993 of $4.8 million, or $.93 per share, compared to $4.9 million, or $.92 per share, for the first quarter of 1992. The 1992 quarter included a $.3 million ($.06 per share) non-recurring charge as the result of adoption of Financial Accounting Standards Board Statement No. 109 (Accounting for Income Taxes). Realized net gains on investments for the 1993 first quarter of $.21 per share were level with that of the 1992 first quarter. Federal tax credits resulting from the "fresh start" provisions of the 1986 Tax Reform Act added $.03 per share to the 1993 first quarter compared to $.04 per share during the first quarter of 1992. After adjusting for capital transactions, the effects of fresh start and the first quarter 1992 accounting adjustment, net operating income for the first quarter of 1993 was $3.6 million, or $.70 per share, compared to $3.9 million, or $.73 per share, for the first quarter of 1992.
 Net premiums earned by the company's insurance subsidiaries during the first quarter totaled $17.5 million compared to $21.3 million for the first quarter of 1992. The decreased premium volume is attributable to decreases in retrospectively rated worker's compensation premiums which have been replaced by a new large deductible worker's compensation program. Premium volume for the first quarter of 1993 was reduced by $5.5 million as the result of this change in worker's compensation programs. This decrease was partially offset by a $1.1 million increase in Indiana general lines business and a $.3 million increase in voluntary assumptions under catastrophic pool treaties. Premium from involuntary residual markets also increased $.5 million.
 Investment income declined by 14 percent quarter to quarter reflecting lower yields in the company's short-term portfolio and a reduction in dividend income from common stocks held by the company.
 The consolidated combined ratio of the insurance subsidiaries for the first quarter of 1993 was 96.6 percent producing an underwriting gain of $.6 million. This compares to a $.4 million underwriting gain on a combined ratio of 98.2 percent for the first quarter of 1992. The company continues with underwriting profitability in its insurance operations, but the "soft" insurance marketplace inhibits expansion in volume.
 Shareholders' equity increased $4.0 million from December 31, 1992 and totals $181.9 million at March 31, 1993. Book value per c ldwin & Lyons, Inc. and Subsidiaries
 (In thousands, except per share data)
 Three Months Ended
 March 31,
 1993 1992
 Revenue $23,549 $28,056
 Income from operations
 before realized capital
 transactions $ 3,788 $ 4,156
 Realized net gains
 on investments net of
 federal income taxes 1,082 1,095
 Nonoperating loss (54) (17)
 Cumulative effect of change
 in accounting method (deduction) --- (322)
 Net income $ 4,816 $ 4,912
 Per share data:
 Average number of shares 5,197 5,357
 Income from operations
 before realized captial
 transactions $.70 $.73
 Realized net gains
 on investments .21 .21
 Fresh start benefits .03 .04
 Nonoperating loss (.01) ---
 Cumulative effect of change
 in accounting method --- (.06)
 Net income $ .93 $ .92
 Dividends paid $.125 $ .075
 Annualized Return on average
 shareholders' equity
 (net income) 10.7 pct. 12.8 pct.
 Consolidated combined ratio of
 insurance subsidiaries
 (GAAP basis) 96.6 pct. 98.2 pct.
 -0- 4/27/93
 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/
 (BWINA BWINB)


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

KL -- CL015 -- 1326 04/27/93 11:43 EDT
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Publication:PR Newswire
Date:Apr 27, 1993
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