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BALDWIN & LYONS, INC. UNAUDITED THIRD QUARTER REPORT

 BALDWIN & LYONS, INC. UNAUDITED THIRD QUARTER REPORT
 INDIANAPOLIS, Oct. 29 /PRNewswire/ --Baldwin & Lyons, Inc.


(NASDAQ: BWINA, BWINB) today announced net income from operations for the third quarter ended Sept. 30, 1992 of a record $6.0 million, or $1.16 per share, compared to $5.6 million, or $1.05 per share, for the third quarter of 1991. The third quarter 1992 results included net capital gains of $.8 million, or $.15 per share, compared to $.17 per share for the 1991 third quarter. Federal tax credits resulting from the "fresh start" provisions of the 1986 Tax Reform Act added $.03 per share during the current quarter compared to $.04 per share for the third quarter of 1991. After adjusting for capital gains and the effects of fresh start, net operating income for the third quarter of 1992 was $5.0 million, or $.97 per share, compared to $4.5 million, or $.85 per share, for the third quarter of 1991.
 For the nine months ended Sept. 30, 1992, operating income was a record $16.7 million, or $3.15 per share compared to $14.5 million, or $2.71 per share, for the first nine months of 1991. Net capital gains included in operations were $.37 per share in each of the periods. Fresh start credits totaled $.6 million for the first nine months of 1992 ($.11 per share) and were $.6 million ($.10 per share) in the comparable 1991 period. Net operating income for the nine months ended Sept. 30, 1992, after adjustment for capital gains and fresh start, was $14.1 million, or $2.66 per share, again a record, and compares to $12.1 million, or $2.25 per share, for the first nine months of 1991.
 Net premiums earned by the company's insurance subsidiaries during the third quarter totaled $18.8 million compared to $24.7 million during the third 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 so the amount retained by the company for risk incurred and services performed will be nearly the same as in the prior retrospective program. On a year-to-date basis, 1992 premiums earned of $56.7 million are 14 percent lower than the $66.2 million earned in the 1991 period for the same reason.
 The consolidated combined ratio for the third quarter of 1992 was 90.2 percent producing a $1.8 million underwriting gain. This compares to a $.7 million gain on a combined ratio of 97.2 percent for the third quarter of 1991. On a year-to-date basis, the consolidated combined ratio for 1992 was 92.4 percent compared to 99.5 percent of the first nine 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 current year underwriting results were favorably impacted by a $1 million subrogation recovery on a previously paid claim as well as significantly improved underwriting results by Hoosier Insurance Company, the company's general lines subsidiary.
 Including the effect of a $1.0 million decrease in unrealized losses on investments and $4.8 million in additional treasury stock purchases, shareholders' equity increased $11.5 million from Dec. 31, 1991 and totals $172.2 million at Sept. 30, 1992. Book value per common share outstanding increased 10.5 percent, or $3.14 during the nine months to $33.12 at Sept. 30, 1992.
 Financial Highlights (Unaudited)
 (In thousands, except per
 share data)
 Three Months Ended
 Baldwin & Lyons, Inc. September 30,
 and Subsidiaries 1992 1991
 Revenue $24,844 $31,296
 Income from operations
 before realized capital
 transactions $5,194 $4,765
 Realized net gains
 on investments net of
 federal income taxes 774 943
 Nonoperating income (loss) 58 (66)
 Net income $6,026 $5,642
 Per share data:
 Average number of shares 5,204 5,357
 Income from operations before
 realized capital transactions $.97 $.85
 Realized net gains on
 investments .15 .17
 Fresh start benefits .03 .04
 Nonoperating income (loss) .01 (.01)
 Net income $1.16 $1.05
 Dividends paid $.125 $.075
 Annualized return on average
 shareholders' equity
 (net income) 14.3 pct. 14.8 pct.
 Consolidated combined ratio of
 insurance subsidiaries
 (GAAP basis) 90.2 pct. 97.2 pct.
 Nine Months Ended
 September 30,
 1992 1991
 Revenue $74,810 $85,135
 Income from operations
 before realized capital
 transactions $14,649 $12,617
 Realized net gains
 on investments net of
 federal income taxes 1,963 1,960
 Nonoperating income (loss) 40 (77)
 Net income $16,652 $14,500
 Per share data:
 Average number of shares 5,285 5,355
 Income from operations before
 realized capital transactions $2.66 $2.25
 Realized net gains on
 investments .37 .37
 Fresh start benefits .11 .10
 Nonoperating income (loss) .01 (.01)
 Net income $3.15 $2.71
 Dividends paid $.275 $.225
 Annualized return on average
 shareholders' equity
 (net income) 13.3 pct. 13.4 pct.
 Consolidated combined ratio of
 insurance subsidiaries
 (GAAP basis) 92.4 pct. 99.5 pct.
 -0- 10/29/92
 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/
 (BWINA BWINB) CO: Baldwin & Lyons, Inc. ST: Indiana IN: INS SU: ERN


KK -- CL027 -- 6758 10/29/92 16:21 EST
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Date:Oct 29, 1992
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