Baldwin & Lyons Posts $6.1 million Q3 Operating Profit

Indianapolis-based specialty insurer Baldwin & Lyons (B&C) announced that third quarter operating income, which excludes capital gains/losses, were $6.1 million, its highest quarterly return ever, reaching 52 cents per share, in comparison to an operating loss of $8.9 million, or 73 cents per share, for the third quarter of 2001.

Last year’s earnings were hit by the WTC attacks, which required B&C to take a $20 million pre-tax charge. However, the company was hit by the fall in investment returns and equity values, posting capital losses of $3.2 million, or 28 cents per share, for the third quarter of 2002, compared to net capital gains of 14 cents per share last year.

The company’s third quarter net income was $2.8 million, or 24 cents per share, compared to a net loss of $7.2 million, or 59 cents per share, for the third quarter of 2001 (48 cents per share excluding the WTC loss).

“Premiums written increased 48% from the third quarter of 2002 with the Company’s subsidiaries, Protective and Sagamore Insurance Companies, registering gains of 65% and 17%, respectively. Year-to-date, consolidated premiums written are up 38% with Protective Insurance Company’s fleet trucking division leading the way with a 61% increase in direct premium written. Net premiums earned during the current quarter totaled $27.0 million, an increase of 31% from the $20.7 million reported for the third quarter of 2001. On a year-to-date basis, 2002 premiums earned increased 22% to $74.6 million,” said the announcement.

“New customers, higher and growing premium volume and lower loss ratios make for an excellent and record-setting quarter,” stated CEO Gary W. Miller. “We are optimistic those positives will continue and also expect improved cash flow which should somewhat offset the lower available yields that have reduced investment income.”

Topics Profit Loss