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Nasdaq:BWINB
Baldwin
& Lyons, Inc. (B&L) specializes in marketing and underwriting property
and casualty insurance.
Baldwin
& Lyons, Inc. (B&l) se spécialise dans le marketing et la
propriété et l'assurance accidents de garantie
Baldwin
& Lyons Announces Results for Quarter
Company Release - 05/01/2008
07:30
INDIANAPOLIS, May 1,
2008 (PRIME NEWSWIRE) -- Baldwin & Lyons, Inc. (Nasdaq:BWINA) (Nasdaq:BWINB)
today announced a first quarter net loss of $4.6 million, or $.30 per share,
compared to net income of $8.2 million, or $.54 per share, for the first
quarter of 2007. Operating income, defined as net income before investment
gains or losses was $4.2 million, or $.28 per share, for the current quarter
compared to $7.9 million, or $.52 per share, reported in 2007. Net investment
losses totaled $8.8 million, or $.58 per share, during the quarter and
compare to net investment gains of $.3 million, or $.02 per share in the
prior year quarter.
Net premium earned by
the Company's insurance subsidiaries increased by 2.1% to $45.1 million
for the first quarter of 2008. Direct and assumed premiums written for
the current quarter increased 4% compared to the first quarter of 2007.
The written and earned premium increases for the quarter were generated
from volume increases in the Company's independent contractor and reinsurance
assumed products. These increases were partially offset by declines in
written and earned premium in the Company's private passenger and small
fleet liability trucking programs and, to a lesser extent, the excess trucking
programs where the markets have remained very competitive throughout 2008
and 2007.
The company's quarterly
consolidated combined ratio was 98.5%, before fee income (96.9% after fees),
producing an underwriting gain of $.6 million, compared to last year's
first quarter ratio of 88.2%, before fees (86.4% after fees), and underwriting
profits of $5.2 million. The increase in combined ratio is attributable
to some large loss activity and also an unusually large amount of prior
year reserve savings realized during the first quarter of 2007 while reserve
savings realized during the current quarter were below average.
Pre-tax investment income
decreased 13.3% for the current year's first quarter reflecting decreased
yields in all categories of investments. Additionally, pre-tax investment
income decreased due to a higher proportion of the Company's bond portfolio
allocated to municipal bonds in 2008. Net investment income, after tax,
decreased 6.7% compared with the prior year first quarter.
Pre-tax investment losses
for the quarter of $13.6 million included $12.0 million associated with
limited partnership activity in line with domestic and foreign stock market
fluctuations for the quarter. The largest portion of the current quarter
loss was associated with the Company's investment in the Indian stock market
which had experienced large gains during 2007.
Shareholders' equity decreased
$11.4 million (3.0%) from December 31, 2007, including cash dividends paid
of $3.8 million ($.25 per share). Book value per common share outstanding
was $24.23 at March 31, 2008, a decrease of $.75 from year end 2007. The
combination of book value change and cash dividends equals a negative 2.0%
return on beginning book value for 2008.
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