This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Affirms Ratings Of Baldwin & Lyons, Inc. And Its Subsidiaries

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa” of the Baldwin & Lyons Group, which includes the lead company, Protective Insurance Company (PIC) and its wholly owned subsidiary, Sagamore Insurance Company. In addition, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of PIC’s wholly owned subsidiary, Protective Specialty Insurance Company (PSIC).

Concurrently, A.M. Best has affirmed the ICR of “a” of the group and PSIC’s ultimate publicly traded parent, Baldwin & Lyons, Inc. [NASDAQ: BWINA and BWINB]. The outlook for all ratings is stable. All companies are domiciled in Indianapolis, IN.

The group’s ratings reflect its superior risk-adjusted capitalization, solid operating performance and market position in its core commercial trucking market. These positive rating attributes are derived from the group’s modest underwriting leverage, disciplined underwriting practices and solid market presence within the national and regional commercial trucking market. Long-standing relationships are maintained with a core group of large trucking firms, including the group’s largest customer, resulting from its commitment to service and product initiatives, somewhat offsetting concerns regarding customer concentration. In addition, the group increasingly operates as a diversified carrier through its expansion of products and markets including non-standard personal automobile coverage, small fleet trucking programs, assumed reinsurance and, more recently, Florida business owners’ policies (BOP) and miscellaneous professional lines errors and omissions (MPL E&O) insurance. Historically, the group’s emphasis on disciplined underwriting and loss controls has led to solid underwriting profitability and consistent loss reserve redundancies on prior accident years.

The group’s positive rating factors are partially offset by the long-term competitive nature of its core commercial trucking and non-standard automobile markets; elevated exposure to investment variability due to above-average common stock and limited partnership investments (as demonstrated by realized and unrealized capital losses experienced by the group in years 2008, followed by gains in 2009 and 2010); shareholder dividend requirements of the parent; and a degree of concentration with its largest customer. While growth in the group’s assumed reinsurance program and recent entrance into the Florida BOP business adds diversification, it also adds a source of potential variability in results through exposure to natural catastrophes as evidenced in the assumed reinsurance program in 2010 and the first quarter of 2011.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs