Baldwin & Lyons Inc. (BWINA, Financial) filed Annual Report for the period ended 2010-12-31.
Baldwin & Lyons Inc. has a market cap of $316.7 million; its shares were traded at around $21.38 with a P/E ratio of 22.2 and P/S ratio of 1.3. The dividend yield of Baldwin & Lyons Inc. stocks is 4.6%.
For policies inforce at December 31, 2010, the maximum amount for which the Company insures a fleet transportation risk is $10 million, less applicable self-insured retentions, although for the majority of policies written, the maximum limits provided by the Company are $5 million. Any limits above $10 million required by customers are either placed directly by Baldwin & Lyons, Inc. with excess carriers or are written by the Company but 100% reinsured. Certain coverages, such as workers compensation, provide essentially unlimited exposure, although the Company protects itself to the extent believed prudent through the purchase of excess reinsurance for these coverages. After giving effect to current treaty and facultative reinsurance arrangements the Company s maximum exposure to loss from a single occurrence ranges from approximately $.25 million to $1.9 million for the vast majority of risks insured although, for certain losses occurring in prior policy years, maximum exposure could be as high as $3.7 million for a single occurrence. Reinsurance agreements effective since June 3, 2004 include provisions for aggregate deductibles that must be exceeded before the Company can recover under the terms of the treaties. The Company retains a higher percentage of the direct premium (and, therefore, cedes less premium to reinsurers) in consideration of these deductible provisions. Net premiums earned and losses incurred by the Company for 2010, 2009 and 2008 each include $23.4 million, $15.8 million and $22.6 million, respectively, related to such deductible provisions inforce during these years.
The reconciliation above shows that a savings of $8.8 million was developed in the liability for losses and LAE recorded at December 31, 2009, with comparative developments for the two previous calendar years. The following table is a summary of the $8.8 million reserve savings by accident year (dollars in thousands):
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Baldwin & Lyons Inc. has a market cap of $316.7 million; its shares were traded at around $21.38 with a P/E ratio of 22.2 and P/S ratio of 1.3. The dividend yield of Baldwin & Lyons Inc. stocks is 4.6%.
Highlight of Business Operations:
Loss reserves related to certain permanent total disability (PTD) workers' compensation claims have been discounted to present value using tables provided by the National Council on Compensation Insurance which are based upon a pretax interest rate of 3.5% and adjusted for those portions of the losses retained by the insured. The loss and LAE reserves at December 31, 2010 have been reduced by approximately $6.5 million as a result of such discounting. Had the Company not discounted loss and LAE reserves, pretax income would have been approximately $.2 million higher for the year ended December 31, 2010.For policies inforce at December 31, 2010, the maximum amount for which the Company insures a fleet transportation risk is $10 million, less applicable self-insured retentions, although for the majority of policies written, the maximum limits provided by the Company are $5 million. Any limits above $10 million required by customers are either placed directly by Baldwin & Lyons, Inc. with excess carriers or are written by the Company but 100% reinsured. Certain coverages, such as workers compensation, provide essentially unlimited exposure, although the Company protects itself to the extent believed prudent through the purchase of excess reinsurance for these coverages. After giving effect to current treaty and facultative reinsurance arrangements the Company s maximum exposure to loss from a single occurrence ranges from approximately $.25 million to $1.9 million for the vast majority of risks insured although, for certain losses occurring in prior policy years, maximum exposure could be as high as $3.7 million for a single occurrence. Reinsurance agreements effective since June 3, 2004 include provisions for aggregate deductibles that must be exceeded before the Company can recover under the terms of the treaties. The Company retains a higher percentage of the direct premium (and, therefore, cedes less premium to reinsurers) in consideration of these deductible provisions. Net premiums earned and losses incurred by the Company for 2010, 2009 and 2008 each include $23.4 million, $15.8 million and $22.6 million, respectively, related to such deductible provisions inforce during these years.
The reconciliation above shows that a savings of $8.8 million was developed in the liability for losses and LAE recorded at December 31, 2009, with comparative developments for the two previous calendar years. The following table is a summary of the $8.8 million reserve savings by accident year (dollars in thousands):
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