This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Baldwin & Lyons Announces Results For Quarter And Twelve Months

Stocks in this article: BWINA BWINB

Premiums written and assumed for the twelve months of 2012 totaled a record $341.3 million, as the planned reductions in volume from private passenger automobile, commercial multi-peril and property reinsurance businesses were more than offset with higher premium from fleet transportation, primary professional liability and casualty reinsurance products.

Net premium earned of $61.4 million for the fourth quarter of 2012 was 4% lower than the record premium earned in the fourth quarter of 2011. The majority of this decline was related to the planned reductions in the products lines mentioned above, most notably the property products within the reinsurance segment. For the twelve months, earned premium decreased 3% to $237.5 million, as planned product reductions and reinsurance treaty changes were largely offset by increased premium written in fleet transportation and other product groups.

The Company's consolidated combined ratio for the fourth quarter was 93.8%, before consideration of fee income. Including fee income, underwriting income was $4.3 million, producing a combined ratio of 93.0%. All major product groups were profitable for the quarter including property reinsurance. With the property reinsurance program changes instituted in the past year and purchased reinsurance protection, superstorm Sandy was essentially a non-event for the Company. Reinsurance recoveries and reinstatement premium offset expected Sandy losses to produce a nearly zero effect on the Company's results. For the twelve months, the consolidated combined ratio was 88.9%, producing twelve month record underwriting income of $26.3 million before consideration of fee income, and $28.6 million, also a record of 88.0%, after consideration of fees. Profitability from all major product groups, combined with the lack of any major catastrophic losses to the Company, contributed to the favorable annual results. Pre-tax operating income for the twelve months, before investment income, totaled a record $27.7 million.

While investment income for the fourth quarter rallied 3% over the prior year primarily due to the acceleration of dividends paid on many equity security holdings, investment income continues to suffer from historically low available yields. Pre-tax investment income for the full year was 7% lower than 2011 and after-tax investment income was 9% lower despite the fact that cash flow from operations remained positive at $58.9 million for the year. Realized gains in the fourth quarter were modest but $9 million in pre-tax realized gains were produced for the year.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs