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BALDWIN & LYONS ANNOUNCES EARNINGS

 INDIANAPOLIS, Feb. 8 /PRNewswire/ -- Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today announced net income for the fourth quarter ended Dec. 31, 1992, of $4.9 million, or $0.95 per share, compared to $4.7 million, or $0.87 per share, for the fourth quarter of 1991. The fourth-quarter 1992 results included realized net capital losses of $0.02 per share, compared to net capital gains of $0.25 per share a year earlier and "fresh start" federal tax credits totaling $0.03 per share, compared to credits of $0.08 per share during the fourth quarter of 1991. After adjusting for capital gains and the effects of fresh start, net operating income for the fourth quarter of 1992 was $4.9 million, or $0.95 per share, compared to $2.9 million, or $0.54 per share, for the fourth quarter of 1991. Operating income for the final quarter of 1991 was reduced by approximately $0.18 per share as the result of a reevaluation in asset value by the company's unconsolidated real estate subsidiary to reflect then-current market conditions.
 For the year ended Dec. 31, 1992, net income totaled a record $21.3 million, or $4.04 per share compared to $19.2 million, or $3.58 per share, for 1991. Realized capital gains included in operations were $0.35 per share in 1992 compared to gains of $0.62 per share for 1991. Fresh start credits totaled $0.7 million for 1992 ($0.14 per share) and were $1.0 million ($0.18 per share) in 1991. 1992 results also include a $0.3 million charge resulting from a change in the method of accounting for deferred taxes as required by Financial Accounting Standards Board Statement No. 109. Net operating income for the year ended Dec. 31, 1992, after adjustment for capital gains, fresh start, and the aforementioned accounting change, was a record $19.0 million, or $3.61 per share, compared to $15.0 million, or $2.79 per share, for 1991.
 Net premiums earned by the company's insurance subsidiaries during the fourth quarter totaled $14.4 million compared to $27.4 million during the fourth quarter of 1991. Approximately $5.7 million of the premium volume decrease is attributable to retrospectively-rated workers' compensation premiums which are being replaced by a new large deductible workers' 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 the risk incurred, and services performed will be nearly the same as in the prior retrospective program. In addition, retrospective workers' compensation premium volume for the fourth quarter of 1991 was approximately $3.3 million higher than normal due to significant loss development during that quarter, while such premium in the fourth quarter of 1992 was impacted by changes in pass-through assessment factors which resulted in a non-recurring $3.6 million reduction in premium earned. On a year-to-date basis, 1992 premiums earned of $71.2 million are 24 percent lower than the $93.6 million earned during 1991 for the same reason.
 The consolidated combined ratio for the fourth quarter of 1992 was 89.7 percent producing an underwriting gain of $1.5 million. This compares to a $0.1 million underwriting loss on a combined ratio of 100.4 percent for the fourth quarter of 1991. On a year-to-date basis, the consolidated combined ratio for 1992 was 91.9 percent compared to 99.8 percent for 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.
 Shareholders' equity increased $17.2 million from Dec. 31, 1991, which included a change in the company's investment portfolio from an unrealized net loss of $1.9 million to an unrealized gain of $1.7 million and additional treasury stock purchases of $4.9 million. Shareholders' equity totals $177.9 million at Dec. 31, 1992, which equates to $34.23 per outstanding share, an increase of $4.25 during the year.
 The board of directors declared the regular quarterly dividend of $.125 per share on the Class A and Class B Common Stock, payable March 5, 1993, to shareholders of record on Feb. 19, 1993.
 The company plans to mail its 1992 Annual Report to shareholders, along with Proxy Statements, on April 1, 1993.
 BALDWIN & LYONS, INC. AND SUBSIDIARIES
 Financial Highlights (unaudited)
 (In thousands, except per share data)
 Three Months Ended 12 Months Ended
 Dec. 31 Dec. 31
 1992 1991 1992 1991
 Revenue $19,080 $34,901 $93,890 $120,036
 Income from operations
 before realized capital
 transactions $5,083 $3,325 $19,732 $15,942
 Realized net gains (losses)
 on investments net of
 federal income taxes (130) 1,353 1,833 3,313
 Non-operating income
 (loss) (32) 19 8 (58)
 Cumulative effect of change
 in accounting method --
 FAS No. 109 (loss) --- --- (322) ---
 Net income $4,921 $4,697 $21,251 $19,197
 Per share data:
 Average number of
 shares 5,195 5,360 5,263 5,356
 Income from operations
 before realized capital
 transactions $.95 $.54 $3.61 $2.79
 Realized net gains (losses)
 on investments (.02) .25 .35 .62
 Fresh start benefits .03 .08 .14 .18
 Non-operating income
 (loss) (.01) --- --- (.01)
 Cumulative effect of change
 in accounting method --
 FAS No. 109 (loss) --- --- (.06) ---
 Net income $.95 $.87 $4.04 $3.58
 Dividends paid $.250 $.075 $.525 $.300
 Annualized return on
 average shareholders'
 equity (net income)
 (percent) 11.2 11.9 12.6 13.1
 Consolidated combined
 ratio of insurance
 subsidiaries (GAAP
 basis) (percent) 89.7 100.4 91.9 99.8
 -0- 2/8/93
 /CONTACT: Gregory A. Bonnell of Baldwin & Lyons, Inc., 317-636-9800/
 (BWIN)


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

DH -- CL009 -- 4120 02/08/93 12:36 EST
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Date:Feb 8, 1993
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