Baldwin & Lyons Announces Results for the First Quarter of 2017
May 10 2017 - 9:00AM
Baldwin & Lyons, Inc. (NASDAQ:BWINA) (NASDAQ:BWINB) today
announced first quarter net income of $6.8 million, or $0.45 per
share, which compares to net income of $14.1 million, or $0.94 per
share, for the prior year’s first quarter.
Gross premiums written for the current quarter was a record
$110.0 million, 14.4% higher than the $96.2 million written during
the first quarter of 2016. The increase was primarily driven
by the continued strong performance of the Company’s commercial
automobile and workers’ compensation products.
Net premiums earned for the first quarter of 2017 was $74.0
million, 10.6% higher than last year’s first quarter total,
primarily driven by increases in premiums earned from the
commercial automobile and workers’ compensation products.
Net investment income of $3.7 million, reflected an increase of
7.3% compared to the first quarter of 2016 due to higher bond
yields.
Underwriting operations produced a combined ratio of 99.7%
during the first quarter of 2017, which compares to a combined
ratio of 86.5% for the 2016 first quarter. The combined ratio
difference was mainly the result of unusually favorable loss
experience during the first quarter of 2016 and unfavorable loss
experience during the first quarter of 2017 due in part to a severe
charter bus loss.
Book value per share on March 31, 2017 was $27.34, an increase
of $0.53 per share during the first quarter, after the payment of
cash dividends to shareholders totaling $0.27 per share. The
combination of the increase in book value and dividends represents
an 11.9% total return on beginning book value for the three months
ended March 31, 2017.
The Company's net income, determined in accordance with U.S.
generally accepted accounting principles (GAAP), includes items
that may not be indicative of ongoing operations. The following
table reconciles income before federal income taxes to underwriting
income, a non-GAAP financial measure that is a useful tool for
investors and analysts in analyzing ongoing operating trends.
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Three Months Ended |
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March 31 |
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2017 |
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2016 |
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Income
before federal income taxes |
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$ |
10,178 |
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$ |
21,438 |
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Less: Net
realized gains on investments |
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6,294 |
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|
9,012 |
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Operating income, before federal income taxes |
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$ |
3,884 |
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$ |
12,426 |
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Less: Investment income |
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|
3,692 |
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|
3,440 |
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Underwriting
income |
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$ |
192 |
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$ |
8,986 |
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Three months ended March 31,
2017
Operating IncomeOperating income, before
federal income taxes, was $3.9 million for the first quarter of
2017 which compares to operating income, before federal income
taxes, of $12.4 million during the first quarter of 2016.
Conference Call Information:Baldwin &
Lyons, Inc. has scheduled its quarterly conference call for
Wednesday, May 10, 2017, at 11:00 AM ET (New York City time) to
discuss results for the first quarter ended March 31, 2017.
To participate via teleconference, investors may dial
1-877-705-6003 (U.S./Canada) or 1-201-493-6725 (International or
local) at least five minutes prior to the beginning of the
call. A replay of the call will be available through May 17,
2017 by calling 1-844-512-2921 or 1-412-317-6671 and referencing
passcode 13657859. 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 November 10, 2017. The
webcast may be accessed directly at:
http://public.viavid.com/player/index.php?id=123410.
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.
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.
Financial
Highlights (unaudited) |
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Baldwin & Lyons,
Inc. and Subsidiaries |
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(In thousands, except
per share data) |
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Three Months Ended |
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March 31 |
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2017 |
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2016 |
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Operating revenue |
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$ |
78,647 |
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$ |
71,713 |
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Net realized gains on
investments |
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6,294 |
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9,012 |
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Total revenue |
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$ |
84,941 |
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$ |
80,725 |
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Net operating
income |
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$ |
2,665 |
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$ |
8,254 |
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Net realized gains on
investments, |
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net of
federal income taxes |
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4,091 |
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5,858 |
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Net income |
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$ |
6,756 |
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$ |
14,112 |
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Per share data -
diluted: |
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Average
number of shares |
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15,104 |
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15,076 |
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Net
operating income |
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$ |
.18 |
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$ |
.55 |
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Net
investment gains |
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|
.27 |
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|
.39 |
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Net income |
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$ |
.45 |
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$ |
.94 |
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Dividends paid to
shareholders |
|
$ |
.27 |
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$ |
.26 |
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Comprehensive income, net of tax |
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Net income |
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$ |
6,756 |
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$ |
14,112 |
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Unrealized net gains (losses) on securities |
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|
5,335 |
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(8,050 |
) |
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Foreign currency translation adjustments |
|
|
65 |
|
|
|
419 |
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Comprehensive income |
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$ |
12,156 |
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$ |
6,481 |
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Annualized: |
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Total
Value Creation 1 |
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11.9 |
% |
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6.4 |
% |
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Return on
average shareholders' equity: |
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Net
operating income |
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|
2.9 |
% |
|
|
9.1 |
% |
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Net
income |
|
|
7.3 |
% |
|
|
15.6 |
% |
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Consolidated combined
ratio of |
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insurance
subsidiaries (GAAP basis): |
|
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99.7 |
% |
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86.5 |
% |
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1 Total Value Creation equals: (1) change in book value plus
dividends paid, divided by (2) beginning book value |
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Investor Contact: William Vens
investors@baldwinandlyons.com
(317) 429-2554
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