Baldwin & Lyons Inc. (BWINA, Financial) filed Quarterly Report for the period ended 2010-11-02.
Baldwin & Lyons Inc. has a market cap of $346.4 million; its shares were traded at around $23.1 with a P/E ratio of 19.3 and P/S ratio of 1.5. The dividend yield of Baldwin & Lyons Inc. stocks is 4.3%.
Financing activity for the first nine months of 2010 included regular and extra dividend payments of $14.8 million ($1.00 per share) and the repayment of $3.0 million under the Company s line of credit.
Consolidated shareholders equity is composed largely of GAAP shareholders equity of the insurance subsidiaries. As such, there are statutory restrictions on the transfer of portions of this equity to the parent holding company. At September 30, 2010, $43.7 million may be transferred by dividend or loan to the parent company during the remainder of 2010 without approval by, or prior notification to, regulatory authorities. An additional $241.6 million of shareholder s equity of the insurance subsidiaries could, theoretically, be advanced or loaned to the parent holding company with prior notification to, and approval from, regulatory authorities, although it is unlikely that transfers of this size would be practical. The Company believes that these restrictions pose no material liquidity concerns to the Company. The Company also believes that the financial strength and stability of the subsidiaries would permit ready access by the parent
The third quarter 2010 net realized investment gains of $10.3 million resulted primarily from $6.3 million in gains on limited partnerships and $4.0 million in gains on disposal of securities. Comparative third quarter 2009 investment gains were $15.4 million; however, investment gains occur based on decisions regarding the sale of individual securities and the change in total value of limited partnerships and, as such, are not expected to be comparable from period to period. See footnote 2 to the enclosed financial statements for a more detailed discussion regarding the accounting policies and the net gains reported for the Company s investments in limited partnerships.
Net realized investment gains for the first nine months of 2010 were $10.6 million, resulting from a $6.7 million gain on disposal of securities and a $3.9 million gain on limited partnerships. Net realized investment gains were $26.7 million for the same period in 2009; however, investment gains occur based on decisions regarding the sale of individual securities and the change in total value of limited partnerships and, as such, are not expected to be comparable from period to period. See footnote 2 to the enclosed financial statements for a more detailed discussion regarding the accounting policies and the net gains reported for the Company s investments in limited partnerships.
Losses and loss expenses incurred during the first nine months of 2010 were $37.6 million higher than that experienced during the first nine months of 2009 with the majority of the increase attributable to catastrophe losses from major earthquakes and windstorms occurring during the first and third quarters of 2010 totaling $24.1 million with the remainder attributable to increased premium volume. Loss ratios for each of the Company s major product lines were as follows:
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Baldwin & Lyons Inc. has a market cap of $346.4 million; its shares were traded at around $23.1 with a P/E ratio of 19.3 and P/S ratio of 1.5. The dividend yield of Baldwin & Lyons Inc. stocks is 4.3%.
Highlight of Business Operations:
The Company generally experiences positive cash flow from operations resulting from the fact that premiums are collected on insurance policies in advance of the disbursement of funds in payment of claims. Operating costs of the property/casualty insurance subsidiaries, other than loss and loss expense payments and commissions paid to related agency companies, generally average less than 30% of premiums earned and the remaining amount is available for investment for varying periods of time pending the settlement of claims relating to the insurance coverage provided. The Company s cash flow relating to premiums is significantly affected by reinsurance programs in effect from time-to-time whereby the Company cedes both premium and risk to other insurance and reinsurance companies. These programs vary significantly among products. For the first nine months of 2010, the Company experienced positive cash flow from operations totaling $36.9 million which compares to positive cash flow from operations of $13.8 million generated during the first nine months of 2009. The $23.1 million improvement in cash flow from the 2009 period is primarily due to higher net premiums received that was partially offset by a decline in investment income received.Financing activity for the first nine months of 2010 included regular and extra dividend payments of $14.8 million ($1.00 per share) and the repayment of $3.0 million under the Company s line of credit.
Consolidated shareholders equity is composed largely of GAAP shareholders equity of the insurance subsidiaries. As such, there are statutory restrictions on the transfer of portions of this equity to the parent holding company. At September 30, 2010, $43.7 million may be transferred by dividend or loan to the parent company during the remainder of 2010 without approval by, or prior notification to, regulatory authorities. An additional $241.6 million of shareholder s equity of the insurance subsidiaries could, theoretically, be advanced or loaned to the parent holding company with prior notification to, and approval from, regulatory authorities, although it is unlikely that transfers of this size would be practical. The Company believes that these restrictions pose no material liquidity concerns to the Company. The Company also believes that the financial strength and stability of the subsidiaries would permit ready access by the parent
The third quarter 2010 net realized investment gains of $10.3 million resulted primarily from $6.3 million in gains on limited partnerships and $4.0 million in gains on disposal of securities. Comparative third quarter 2009 investment gains were $15.4 million; however, investment gains occur based on decisions regarding the sale of individual securities and the change in total value of limited partnerships and, as such, are not expected to be comparable from period to period. See footnote 2 to the enclosed financial statements for a more detailed discussion regarding the accounting policies and the net gains reported for the Company s investments in limited partnerships.
Net realized investment gains for the first nine months of 2010 were $10.6 million, resulting from a $6.7 million gain on disposal of securities and a $3.9 million gain on limited partnerships. Net realized investment gains were $26.7 million for the same period in 2009; however, investment gains occur based on decisions regarding the sale of individual securities and the change in total value of limited partnerships and, as such, are not expected to be comparable from period to period. See footnote 2 to the enclosed financial statements for a more detailed discussion regarding the accounting policies and the net gains reported for the Company s investments in limited partnerships.
Losses and loss expenses incurred during the first nine months of 2010 were $37.6 million higher than that experienced during the first nine months of 2009 with the majority of the increase attributable to catastrophe losses from major earthquakes and windstorms occurring during the first and third quarters of 2010 totaling $24.1 million with the remainder attributable to increased premium volume. Loss ratios for each of the Company s major product lines were as follows:
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