Baldwin and Lyons Reports Record Increase in Operating Income

Baldwin & Lyons Inc. of Indianapolis, Ind., announced record first quarter 2002 operating income, before capital gains, of $4.9 million, or $.41 per share, compared to $2.9 million, or $.24 per share, for the first quarter of 2001.

Direct premiums written increased 24 percent from the first quarter of 2001 with the company’s subsidiary, Protective Insurance Company, registering a 49 percent gain while its Sagamore subsidiary declined 2 percent due to its re-underwriting and price increases which reduced market share but substantially improved profitability. Net premiums earned by the company’s insurance subsidiaries during the first quarter totaled $21.7 million, an increase of 14 percent from the $19.0 million reported for the first quarter of 2001.

Nearly all of the Company’s divisions produced improved underwriting results for the current quarter, resulting in a consolidated combined ratio of 91.0 percent and an underwriting gain of $1.9 million compared to a combined ratio of 102.8 percent and an underwriting loss of $.5 million for the first quarter of 2001. The consolidated loss and loss expense ratio decreased from 75.4 percent in the prior year to 63.5 percent, reflecting higher rate levels in all divisions. The consolidated underwriting expense ratio of 27.5 percent compares to 27.4 percent for the 2001 first quarter.

Shareholders’ equity decreased $4.8 million from December 31, 2001, primarily as the result of $8.9 million in treasury share purchases. A total of 440,000 shares of Class A and Class B shares were purchased during the quarter at an average of $20.13 per share. Shareholders’ equity totals $283.5 million at March 31, 2002. Book value per common share outstanding increased 2.0 percent, or $.47, to $24.20 during the first quarter.

Topics Profit Loss