Baldwin & Lyons Inc. (BWINA, Financial) filed Quarterly Report for the period ended 2011-03-31.
Baldwin & Lyons Inc. has a market cap of $318.6 million; its shares were traded at around $21.49 with a P/E ratio of 214.9 and P/S ratio of 1.3. The dividend yield of Baldwin & Lyons Inc. stocks is 4.7%.
Financing activity for the first three months of 2011 included regular dividend payments to shareholders of $3.7 million ($.25 per share) and the repayment of $5.0 million under the Company s line of credit.
The Company s assets at March 31, 2011 included $34.8 million in investments classified as cash equivalents that were readily convertible to cash without significant market penalty. An additional $137.7 million of fixed maturity investments will mature within the twelve-month period following March 31, 2011. The Company believes that these liquid investments are more than sufficient to provide for projected claim payments and operating cost demands.
Consolidated shareholders equity is composed largely of GAAP shareholders equity of the insurance subsidiaries. As such, there are statutory restrictions on the transfer of substantial portions of this equity to the parent holding company. At March 31, 2011, $52.9 million may be transferred by dividend or loan to the parent company during the remainder of 2011 without approval by, or prior notification to, regulatory authorities. An additional $219.9 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
Net premiums written during the first quarter of 2011 increased $7.7 million (10.0%) and net premiums earned increased $6.4 million (12.6%) as compared to the same period of 2010. The Company s Property and Casualty Insurance segment reported an increase in earned premiums of 10.8% while the Reinsurance segment reported an increase of 19.8%. These changes are in line with expectations and result from product expansion and continuing marketing efforts in the Property and Casualty Insurance segment and from program changes in the Reinsurance segment and the introduction of professional liability reinsurance as a new product in 2010. The following table provides information regarding premiums written and earned for each segment for the quarter ended March 31 (dollars in thousands):
Losses and loss expenses incurred during the first quarter of 2011 were $22.6 million higher than that experienced during the first quarter of 2010 due primarily to $23.9 million in property reinsurance losses related to earthquakes in Japan and New Zealand and flooding in Australia occurring in the quarter. The first quarter of 2010 experienced $18.1 million in large catastrophe losses. In addition, fleet transportation losses were higher than normal in the current quarter while the first quarter of 2010 losses in this product group were more favorable than normal. The loss ratios for each segment were as follows:
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Baldwin & Lyons Inc. has a market cap of $318.6 million; its shares were traded at around $21.49 with a P/E ratio of 214.9 and P/S ratio of 1.3. The dividend yield of Baldwin & Lyons Inc. stocks is 4.7%.
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 three months of 2011, the Company experienced positive cash flow from operations totaling $6.6 million which compares to positive cash flow from operations of $11.7 million generated during the first three months of 2010. The $5.1 million decrease in cash flow from the 2010 period is primarily due to the timing of settlements of balances with producing agents and brokers and reinsurers.Financing activity for the first three months of 2011 included regular dividend payments to shareholders of $3.7 million ($.25 per share) and the repayment of $5.0 million under the Company s line of credit.
The Company s assets at March 31, 2011 included $34.8 million in investments classified as cash equivalents that were readily convertible to cash without significant market penalty. An additional $137.7 million of fixed maturity investments will mature within the twelve-month period following March 31, 2011. The Company believes that these liquid investments are more than sufficient to provide for projected claim payments and operating cost demands.
Consolidated shareholders equity is composed largely of GAAP shareholders equity of the insurance subsidiaries. As such, there are statutory restrictions on the transfer of substantial portions of this equity to the parent holding company. At March 31, 2011, $52.9 million may be transferred by dividend or loan to the parent company during the remainder of 2011 without approval by, or prior notification to, regulatory authorities. An additional $219.9 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
Net premiums written during the first quarter of 2011 increased $7.7 million (10.0%) and net premiums earned increased $6.4 million (12.6%) as compared to the same period of 2010. The Company s Property and Casualty Insurance segment reported an increase in earned premiums of 10.8% while the Reinsurance segment reported an increase of 19.8%. These changes are in line with expectations and result from product expansion and continuing marketing efforts in the Property and Casualty Insurance segment and from program changes in the Reinsurance segment and the introduction of professional liability reinsurance as a new product in 2010. The following table provides information regarding premiums written and earned for each segment for the quarter ended March 31 (dollars in thousands):
Losses and loss expenses incurred during the first quarter of 2011 were $22.6 million higher than that experienced during the first quarter of 2010 due primarily to $23.9 million in property reinsurance losses related to earthquakes in Japan and New Zealand and flooding in Australia occurring in the quarter. The first quarter of 2010 experienced $18.1 million in large catastrophe losses. In addition, fleet transportation losses were higher than normal in the current quarter while the first quarter of 2010 losses in this product group were more favorable than normal. The loss ratios for each segment were as follows:
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