Attached files
| file | filename |
|---|---|
| 8-K - Protective Insurance Corp | form8k.htm |
Baldwin
& Lyons, Inc.
Protective
Insurance Company
Sagamore
Insurance Company
B
& L Insurance, Ltd. (Bermuda)
1099
North Meridian Street
Indianapolis,
IN 46204
(317)
636-9800
| Subj: Baldwin & Lyons, Inc. | February 4, 2010 |
| Unaudited Fourth Quarter / Annual Report | Press Contact: G. Patrick Corydon |
| (317) 636-9800 | |
| corydon@baldwinandlyons.com |
BALDWIN
& LYONS ANNOUNCES RECORD UNDERWRITING INCOME FOR 2009
Indianapolis, Indiana,
February 4, 2010—Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today
announced net income for the quarter of $10.9 million or $.74 per
share. This compares to a net loss of $.14 per share for the year
earlier period. Operating income, defined as net income before
investment gains and losses, was $8.2 million for the quarter, or $.56 per
share, as compared to $.52 per share for the fourth quarter of
2008. Investment gains, which include the quarterly change in value
for limited partnership investments owned by the Company, were aided by the
continuing recovery of global equity markets during the quarter, adding $.18 per
share to this quarter’s net income. Investment losses of $.66 per
share were recorded in the fourth quarter of 2008.
For the
full year, net income of $44.8 million or $3.04 per share compares to a net loss
of $7.7 million or $.51 per share, in the 2008 period. Operating
income for the current year increased to $1.68 per share from $1.55 per share in
2008. Income from investments, principally changes in value of
limited partnership investments, improved from a loss of $2.06 per share in the
2008 period to a gain of $1.36 per share this year.
Premiums
written by the Company’s insurance subsidiaries for the current quarter
increased 27% when compared to the year earlier period and have increased 13%
for the full year. The quarterly increase includes the impact of new
products as well as higher premium volume from traditional products, including
fleet transportation and private passenger automobile. The increased
year-to-date premium volume is similarly concentrated in new products and
private passenger automobile.
Net
premium earned increased 9% to $51.0 million for the fourth quarter of
2009. For the twelve months, earned premium remained relatively flat
at $181.3 million. The changes in net premium earned, compared to
premium written, reflect both the time lag between premium written and earned as
well as the increased utilization of reinsurance on certain
products.
The
company’s quarterly consolidated combined ratio was 89.1%, producing an
underwriting gain of $5.6 million, compared to last year’s underwriting gain of
$4.3 million on a consolidated combined ratio of 90.8%. For the year,
the consolidated combined ratio was 90.6%, producing record underwriting profits
of $17.1 million, compared to last year’s combined ratio of 94.4% and
underwriting profits of $10.3 million. The current year combined
ratio reflects favorable
underwriting
results in all major product groups with particularly positive results from the
Company’s property reinsurance business due to a lack of major catastrophic
events during 2009.
Investment
income decreased 7% for the current year fourth quarter, a reduction equal to
$.02 per share. For the year, investment income was down 18% or $.18
a share. The 2009 periods reflect dramatically lower available
interest rates, particularly for short-term investments.
Shareholders’
equity increased $8.6 million in the fourth quarter, including a $1.1 million
increase in unrealized gains as the financial markets continued to
recover. Book value increased $0.58 per share (2.3%) for the quarter
as a result of the higher earnings and changes in unrealized
gains. Shareholders’ equity has increased $42.9 million with book
value at December 31, 2009 equaling $25.31 per share, an increase of $2.99 per
share (13.4%) for the year. Including paid dividends of $1.00 per
share, total shareholders' return was 17.9% for the year.
Conference
Call Information:
Baldwin
& Lyons, Inc. has scheduled a conference call for Thursday, February 4, 2010 at 11:00 AM
ET (New York time) to discuss results for the fourth quarter ended December 31,
2009.
To
participate via teleconference, investors may dial 1-888-504-7960 (U.S./Canada)
or 1-719-325-2109 (International or local) at least five minutes prior to the
beginning of the call. A replay of the call will be available through
February 11, 2010 by calling 1-888-203-1112 or 1-719-457-0820 and referencing
passcode 7541902.
Investors
and interested parties may also listen to the call via a live webcast,
accessible on the company’s web site via a link at the top of the main Investor
Relations page. To participate in the webcast, please register at
least fifteen minutes prior to the start of the call. The webcast
will be archived on this site until February 3, 2011.
Also
available on the investor relations section of our web site are complete interim
financial statements and copies of our filings with the Securities and Exchange
Commission.
|
Financial
Highlights (unaudited)
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Baldwin
& Lyons, Inc. and Subsidiaries
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(In
thousands, except per share data)
|
Three
Months Ended
|
Twelve
Months Ended
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December
31
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December
31
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|
2009
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2008
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2009
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2008
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Operating
revenue
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$ | 56,710 | $ | 52,911 | $ | 201,833 | $ | 204,679 | ||||||||
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Net
investment gains (losses)
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4,113 | (15,249 | ) | 30,816 | (47,749 | ) | ||||||||||
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Total
revenue
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$ | 60,823 | $ | 37,662 | $ | 232,649 | $ | 156,930 | ||||||||
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Operating
income
|
$ | 8,223 | $ | 7,770 | $ | 24,771 | $ | 23,324 | ||||||||
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Net
investment gains (losses),
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||||||||||||||||
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net
of federal income taxes
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2,673 | (9,912 | ) | 20,031 | (31,037 | ) | ||||||||||
|
Net
income (loss)
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$ | 10,896 | $ | (2,142 | ) | $ | 44,802 | $ | (7,713 | ) | ||||||
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Per
share data - diluted:
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Average
number of shares
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14,741 | 14,880 | 14,753 | 15,080 | ||||||||||||
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Operating
income
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$ | .56 | $ | .52 | $ | 1.68 | $ | 1.55 | ||||||||
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Net
investment gains (losses)
|
.18 | (.66 | ) | 1.36 | (2.06 | ) | ||||||||||
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Net
income (loss)
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$ | .74 | $ | (.14 | ) | $ | 3.04 | $ | (.51 | ) | ||||||
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Dividends
paid to shareholders
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$ | .25 | $ | .25 | $ | 1.00 | $ | 1.00 | ||||||||
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Annualized
return on average
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shareholders'
equity:
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Operating
income
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9.8 | % | 9.8 | % | 7.6 | % | 7.1 | % | ||||||||
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Net
income
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12.9 | % | -2.7 | % | 13.7 | % | -2.4 | % | ||||||||
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Consolidated
combined ratio of
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insurance
subsidiaries (GAAP basis):
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Without
fee income
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89.1 | % | 90.8 | % | 90.6 | % | 94.4 | % | ||||||||
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Including
fee income
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87.4 | % | 89.7 | % | 89.0 | % | 93.0 | % | ||||||||
Forward-looking
statements in this report are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements involve inherent risks and
uncertainties. Readers are encouraged to review the Company's annual
report for its full statement regarding forward-looking
information.