Indiana (State or other jurisdiction of Incorporation or organization) | 35-0160330 (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
1. | Protective Insurance Company |
2. | Protective Specialty Insurance Company (referred to herein as |
3. | Sagamore Insurance Company |
4. | B&L Brokerage Services, Inc., (referred to herein as "BLBS"), an Indiana domiciled insurance broker licensed in all 50 states and the District of Columbia; and |
5. | B&L Insurance, Ltd. (referred to herein as "BLI"), which is domiciled and licensed in Bermuda. |
- | Commercial motor vehicle liability, physical damage and |
- | Workers' compensation insurance. |
- | Specialized accident (medical and indemnity) insurance for independent |
- | Non-trucking motor vehicle liability insurance for independent contractors. |
- | Fidelity and surety bonds. |
- | Inland Marine consisting principally of cargo insurance. |
- |
RECONCILIATION OF LIABILITY FOR LOSSES AND LOSS ADJUSTMENT | ||||||||||||
EXPENSES (GAAP BASIS) | ||||||||||||
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
NET OF REINSURANCE RECOVERABLE: | (in thousands) | |||||||||||
Liability for losses and LAE at the | ||||||||||||
Beginning of the year | $ | 295,583 | $ | 288,088 | $ | 289,236 | ||||||
Provision for losses and LAE: | ||||||||||||
Claims occurring during the current year | 165,812 | 169,950 | 156,264 | |||||||||
Claims occurring during prior years | (10,062 | ) | (10,354 | ) | (5,563 | ) | ||||||
155,750 | 159,596 | 150,701 | ||||||||||
Payments of losses and LAE: | ||||||||||||
Claims occurring during the current year | 56,710 | 59,826 | 47,908 | |||||||||
Claims occurring during prior years | 92,870 | 92,275 | 103,941 | |||||||||
149,580 | 152,101 | 151,849 | ||||||||||
Liability for losses and LAE at end of year | 301,753 | 295,583 | 288,088 | |||||||||
Reinsurance recoverable on unpaid losses | ||||||||||||
at end of the year | 211,843 | 210,519 | 186,382 | |||||||||
Liability for losses and LAE, gross of | ||||||||||||
reinsurance recoverable, at end of the year | $ | 513,596 | $ | 506,102 | $ | 474,470 |
RECONCILIATION OF LIABILITY FOR LOSSES AND LOSS ADJUSTMENT | ||||||||||||
EXPENSES (GAAP BASIS) | ||||||||||||
Year Ended December 31 | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
NET OF REINSURANCE RECOVERABLE: | (in thousands) | |||||||||||
Liability for losses and LAE at the | ||||||||||||
Beginning of the year | $ | 290,092 | $ | 218,629 | $ | 203,253 | ||||||
Provision for losses and LAE: | ||||||||||||
Claims occurring during the current year | 147,964 | 225,251 | 154,775 | |||||||||
Claims occurring during prior years | (9,875 | ) | (9,696 | ) | (8,823 | ) | ||||||
138,089 | 215,555 | 145,952 | ||||||||||
Payments of losses and LAE: | ||||||||||||
Claims occurring during the current year | 44,942 | 71,699 | 56,394 | |||||||||
Claims occurring during prior years | 94,003 | 72,393 | 74,182 | |||||||||
138,945 | 144,092 | 130,576 | ||||||||||
Other reserve adjustment | - | - | - | |||||||||
Liability for losses and LAE at end of year | 289,236 | 290,092 | 218,629 | |||||||||
Reinsurance recoverable on unpaid losses | ||||||||||||
at end of the year | 166,218 | 131,464 | 125,891 | |||||||||
Liability for losses and LAE, gross of | ||||||||||||
reinsurance recoverable, at end of the year | $ | 455,454 | $ | 421,556 | $ | 344,520 | ||||||
Years in Which Losses Were Incurred | Reserve at December 31, 2014 | (Savings) Deficiency Recorded During 2015 | % (Savings) Deficiency | |||||||||
2014 | $ | 110,124 | $ | (1,085 | ) | (1.0 | %) | |||||
2013 | 65,165 | (6,281 | ) | (9.6 | %) | |||||||
2012 | 37,335 | 5,530 | 14.8 | % | ||||||||
2011 | 28,343 | (4,666 | ) | (16.5 | %) | |||||||
2010 | 10,285 | 2,685 | 26.1 | % | ||||||||
2009 & prior | 44,331 | (6,245 | ) | (14.1 | %) | |||||||
$ | 295,583 | $ | (10,062 | ) | (3.4 | %) |
Years in Which Losses Were Incurred | Reserve at December 31, 2011 | (Savings) Deficiency Recorded During 2011 | % (Savings) Deficiency | |||||||||
2011 | $ | 153,552 | $ | (5,084 | ) | (3.3 | %) | |||||
2010 | 45,733 | 6,221 | 13.6 | % | ||||||||
2009 | 22,976 | (2,648 | ) | (11.5 | %) | |||||||
2008 | 15,385 | (3,583 | ) | (23.3 | %) | |||||||
2007 | 6,085 | (277 | ) | (4.6 | %) | |||||||
2006 & prior | 46,361 | (4,504 | ) | (9.7 | %) | |||||||
$ | 290,092 | $ | (9,875 | ) | (3.4 | %) |
2006 & Prior | 2007 | 2008 | 2009 | 2010 | 2011 | 2009 & Prior | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||||||||||||||||||||
Losses and allocated loss expenses developed on cases known to exist at December 31, 2011 | $ | 391 | $ | 11 | $ | (1,162 | ) | $ | 1,386 | $ | 2,228 | $ | (453 | ) | ||||||||||||||||||||||||||||||||||
Losses and allocated loss expenses reported on cases unknown at December 31, 2011 | 418 | 89 | 544 | 624 | 1,349 | 8,253 | ||||||||||||||||||||||||||||||||||||||||||
Losses and allocated loss expenses developed on cases known to exist at December 31, 2014 | $ | 1,240 | $ | (301 | ) | $ | (4,529 | ) | $ | 8,829 | $ | 14,858 | $ | 17,220 | ||||||||||||||||||||||||||||||||||
Losses and allocated loss expenses reported on cases unknown at December 31, 2014 | 432 | 44 | 1,147 | 400 | 1,348 | 16,886 | ||||||||||||||||||||||||||||||||||||||||||
Unallocated loss expenses paid | 471 | 148 | 123 | 717 | 887 | 2,942 | 193 | 57 | 245 | 832 | 758 | 1,363 | ||||||||||||||||||||||||||||||||||||
Change in reserves for incurred but not reported losses and allocated and unallocated loss expenses | (3,034 | ) | (384 | ) | (1,533 | ) | (4,363 | ) | (2,423 | ) | (15,878 | ) | (7,892 | ) | (1,168 | ) | 1,167 | (9,202 | ) | (21,650 | ) | (32,565 | ) | |||||||||||||||||||||||||
Net (savings) deficiency on losses from directly-produced business | (1,754 | ) | (136 | ) | (2,028 | ) | (1,636 | ) | 2,041 | (5,136 | ) | (6,027 | ) | (1,368 | ) | (1,970 | ) | 859 | (4,686 | ) | 2,904 | |||||||||||||||||||||||||||
(Savings) deficiency reported under voluntary reinsurance assumption agreements and residual markets | (2,750 | ) | (141 | ) | (1,555 | ) | (1,012 | ) | 4,180 | 52 | (218 | ) | 4,053 | (2,696 | ) | 4,671 | (1,595 | ) | (3,989 | ) | ||||||||||||||||||||||||||||
Net (savings) deficiency | $ | (4,504 | ) | $ | (277 | ) | $ | (3,583 | ) | $ | (2,648 | ) | $ | 6,221 | $ | (5,084 | ) | $ | (6,245 | ) | $ | 2,685 | $ | (4,666 | ) | $ | 5,530 | $ | (6,281 | ) | $ | (1,085 | ) |
2015 | 2014 | 2013 | ||||||||||
Property and casualty insurance | $ | (10,289 | ) | $ | (5,423 | ) | $ | (1,725 | ) | |||
Reinsurance | 227 | (4,931 | ) | (3,838 | ) | |||||||
Totals | $ | (10,062 | ) | $ | (10,354 | ) | $ | (5,563 | ) | |||
2012 | 2011 | 2010 | ||||||||||||||||||||||
Development as a percent of beginning loss and loss adjustment expense reserves: | 2015 | 2014 | 2013 | |||||||||||||||||||||
Property and casualty insurance | $ | (7,111 | ) | $ | (7,417 | ) | $ | (6,567 | ) | 4.3 | % | 2.9 | % | 1.4 | % | |||||||||
Reinsurance | (2,764 | ) | (2,279 | ) | (2,256 | ) | -.4 | % | 6.3 | % | 4.5 | % | ||||||||||||
Totals | $ | (9,875 | ) | $ | (9,696 | ) | $ | (8,823 | ) | 3.4 | % | 3.6 | % | 1.9 | % | |||||||||
ANALYSIS OF LOSS AND LOSS ADJUSTMENT EXPENSE DEVELOPMENT--GAAP BASIS | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||||||||||||||||||||||
Liability for Unpaid Losses | ||||||||||||||||||||||||||||||||||||||||||||
and Loss Adjustment | ||||||||||||||||||||||||||||||||||||||||||||
Expenses | $ | 242,130 | $ | 249,495 | $ | 244,500 | $ | 231,633 | $ | 203,253 | $ | 218,629 | $ | 290,092 | $ | 289,236 | $ | 288,088 | $ | 295,583 | $ | 301,753 | ||||||||||||||||||||||
Liability Reestimated | ||||||||||||||||||||||||||||||||||||||||||||
as of: | ||||||||||||||||||||||||||||||||||||||||||||
One Year Later | 225,183 | 228,211 | 227,423 | 222,049 | 194,430 | 208,933 | 280,217 | 283,673 | 277,734 | 285,521 | ||||||||||||||||||||||||||||||||||
Two Years Later | 209,774 | 207,818 | 216,730 | 208,702 | 198,220 | 201,745 | 272,285 | 282,381 | 268,757 | |||||||||||||||||||||||||||||||||||
Three Years Later | 200,955 | 199,503 | 206,445 | 210,562 | 188,110 | 204,243 | 276,525 | 279,685 | ||||||||||||||||||||||||||||||||||||
Four Years Later | 198,376 | 192,678 | 210,170 | 205,519 | 192,195 | 202,078 | 268,299 | |||||||||||||||||||||||||||||||||||||
Five Years Later | 191,846 | 198,023 | 208,132 | 208,398 | 187,792 | 198,518 | ||||||||||||||||||||||||||||||||||||||
Six Years Later | 195,348 | 196,101 | 210,446 | 205,986 | 181,547 | |||||||||||||||||||||||||||||||||||||||
Seven Years Later | 193,226 | 197,898 | 209,288 | 200,460 | ||||||||||||||||||||||||||||||||||||||||
Eight Years Later | 194,188 | 196,421 | 205,179 | |||||||||||||||||||||||||||||||||||||||||
Nine Years Later | 192,585 | 193,746 | ||||||||||||||||||||||||||||||||||||||||||
Ten Years Later | 190,276 | |||||||||||||||||||||||||||||||||||||||||||
Cumulative Redundancy | $ | 51,854 | $ | 55,749 | $ | 39,321 | $ | 31,173 | $ | 21,706 | $ | 20,111 | $ | 21,793 | $ | 9,551 | $ | 19,331 | $ | 10,062 | ||||||||||||||||||||||||
Cumulative Amount of | ||||||||||||||||||||||||||||||||||||||||||||
Liability Paid | ||||||||||||||||||||||||||||||||||||||||||||
Through: | ||||||||||||||||||||||||||||||||||||||||||||
One Year Later | $ | 59,581 | $ | 58,956 | $ | 76,970 | $ | 84,777 | $ | 74,182 | $ | 72,393 | $ | 94,003 | $ | 103,941 | $ | 92,275 | $ | 92,870 | ||||||||||||||||||||||||
Two Years Later | 94,947 | 100,990 | 124,870 | 120,628 | 107,413 | 109,382 | 156,271 | 162,087 | 159,282 | |||||||||||||||||||||||||||||||||||
Three Years Later | 117,522 | 127,011 | 145,857 | 142,731 | 125,038 | 133,507 | 193,566 | 205,452 | ||||||||||||||||||||||||||||||||||||
Four Years Later | 136,652 | 143,612 | 157,724 | 152,679 | 137,460 | 147,462 | 214,873 | |||||||||||||||||||||||||||||||||||||
Five Years Later | 148,039 | 151,662 | 164,877 | 161,834 | 143,461 | 158,172 | ||||||||||||||||||||||||||||||||||||||
Six Years Later | 154,573 | 157,223 | 170,554 | �� | 166,290 | 148,101 | ||||||||||||||||||||||||||||||||||||||
Seven Years Later | 159,428 | 162,331 | 174,190 | 170,126 | ||||||||||||||||||||||||||||||||||||||||
Eight Years Later | 163,779 | 165,372 | 177,275 | |||||||||||||||||||||||||||||||||||||||||
Nine Years Later | 166,062 | 168,157 | ||||||||||||||||||||||||||||||||||||||||||
Ten Years Later | 168,303 |
ANALYSIS OF LOSS AND LOSS ADJUSTMENT EXPENSE DEVELOPMENT--GAAP BASIS | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Year Ended December 31 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | ||||||||||||
Liability for Unpaid | |||||||||||||||||||||||
Losses and LAE, Net | |||||||||||||||||||||||
of Reinsurance | |||||||||||||||||||||||
Recoverables | $144,267 | $162,424 | $207,137 | $242,130 | $249,495 | $244,500 | $231,633 | $203,253 | $218,629 | $290,092 | $289,236 | ||||||||||||
Liability Reestimated | |||||||||||||||||||||||
as of: | |||||||||||||||||||||||
One Year Later | 130,681 | 147,468 | 193,445 | 225,183 | 228,211 | 227,423 | 222,049 | 194,430 | 208,933 | 280,217 | |||||||||||||
Two Years Later | 125,731 | 142,771 | 180,455 | 209,774 | 207,818 | 216,730 | 208,702 | 198,220 | 201,745 | ||||||||||||||
Three Years Later | 124,693 | 137,502 | 171,332 | 200,955 | 199,503 | 206,445 | 210,562 | 188,110 | |||||||||||||||
Four Years Later | 124,714 | 134,661 | 171,225 | 198,376 | 192,678 | 210,170 | 205,519 | ||||||||||||||||
Five Years Later | 124,507 | 135,418 | 171,005 | 191,846 | 198,023 | 208,132 | |||||||||||||||||
Six Years Later | 124,609 | 136,623 | 167,590 | 195,348 | 196,101 | ||||||||||||||||||
Seven Years Later | 124,606 | 135,415 | 170,951 | 193,226 | |||||||||||||||||||
Eight Years Later | 124,809 | 138,191 | 167,613 | ||||||||||||||||||||
Nine Years Later | 127,462 | 134,094 | |||||||||||||||||||||
Ten Years Later | 123,811 | ||||||||||||||||||||||
Cumulative Redundancy | $20,456 | $28,330 | $39,524 | $48,904 | $53,394 | $36,368 | $26,114 | $15,143 | $16,884 | $9,875 | |||||||||||||
Cumulative Amount of | |||||||||||||||||||||||
Liability Paid Through: | |||||||||||||||||||||||
One Year Later | $39,956 | $38,234 | $60,343 | $59,581 | $58,956 | $76,970 | $84,777 | $74,182 | $72,393 | $94,003 | |||||||||||||
Two Years Later | 57,522 | 62,380 | 84,265 | 94,947 | 100,990 | 124,870 | 120,628 | 107,413 | 109,382 | ||||||||||||||
Three Years Later | 69,959 | 74,198 | 102,692 | 117,522 | 127,011 | 145,857 | 142,731 | 125,038 | |||||||||||||||
Four Years Later | 76,408 | 82,479 | 116,198 | 136,652 | 143,612 | 157,724 | 152,679 | ||||||||||||||||
Five Years Later | 81,121 | 91,607 | 124,176 | 148,039 | 151,662 | 164,877 | |||||||||||||||||
Six Years Later | 85,064 | 96,009 | 128,592 | 154,573 | 157,223 | ||||||||||||||||||
Seven Years Later | 88,239 | 99,410 | 132,775 | 159,428 | |||||||||||||||||||
Eight Years Later | 91,379 | 102,797 | 137,094 | ||||||||||||||||||||
Nine Years Later | 94,460 | 106,689 | |||||||||||||||||||||
Ten Years Later | 98,134 |
ANALYSIS OF LOSS AND LOSS ADJUSTMENT EXPENSE DEVELOPMENT--GAAP BASIS | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||||||||||||||||||||||
Direct and Assumed: | ||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Losses and Loss | ||||||||||||||||||||||||||||||||||||||||||||
Adjustment Expenses | $ | 430,273 | $ | 409,412 | $ | 378,616 | $ | 389,558 | $ | 359,030 | $ | 344,520 | $ | 421,556 | $ | 455,454 | $ | 474,470 | $ | 506,102 | $ | 513,596 | ||||||||||||||||||||||
Liability Reestimated as of | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | 324,746 | 300,304 | 305,844 | 298,439 | 289,678 | 300,507 | 382,745 | 423,750 | 438,189 | 463,951 | ||||||||||||||||||||||||||||||||||
Cumulative Redundancy | 105,527 | 109,108 | 72,772 | 91,119 | 69,352 | 44,013 | 38,811 | 31,704 | 36,281 | 42,151 | ||||||||||||||||||||||||||||||||||
Ceded: | ||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Losses and Loss | ||||||||||||||||||||||||||||||||||||||||||||
Adjustment Expenses | 188,143 | 159,917 | 134,116 | 157,925 | 155,777 | 125,891 | 131,464 | 166,218 | 186,382 | 210,519 | 211,843 | |||||||||||||||||||||||||||||||||
Liability Reestimated as of | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | 134,470 | 106,558 | 100,665 | 97,979 | 108,131 | 101,989 | 114,446 | 144,065 | 169,432 | 178,430 | ||||||||||||||||||||||||||||||||||
Cumulative Redundancy | 53,673 | 53,359 | 33,451 | 59,946 | 47,646 | 23,902 | 17,018 | 22,153 | 16,950 | 32,089 | ||||||||||||||||||||||||||||||||||
Net: | ||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Losses and Loss | ||||||||||||||||||||||||||||||||||||||||||||
Adjustment Expenses | 242,130 | 249,495 | 244,500 | 231,633 | 203,253 | 218,629 | 290,092 | 289,236 | 288,088 | 295,583 | 301,753 | |||||||||||||||||||||||||||||||||
Liability Reestimated as of | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | 190,276 | 193,746 | 205,179 | 200,460 | 181,547 | 198,518 | 268,299 | 279,685 | 268,757 | 285,521 | ||||||||||||||||||||||||||||||||||
Cumulative Redundancy | 51,854 | 55,749 | 39,321 | 31,173 | 21,706 | 20,111 | 21,793 | 9,551 | 19,331 | 10,062 |
ANALYSIS OF LOSS AND LOSS ADJUSTMENT EXPENSE DEVELOPMENT--GAAP BASIS | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Year Ended December 31 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |||||||||||
Direct and Assumed: | ||||||||||||||||||||||
Liability for Unpaid Losses | ||||||||||||||||||||||
and Loss Adjustment | ||||||||||||||||||||||
Expenses | $277,309 | $342,449 | $440,172 | $430,273 | $409,412 | $378,616 | $389,558 | $359,030 | $344,520 | $421,556 | $455,454 | |||||||||||
Liability Reestimated as of | ||||||||||||||||||||||
December 31, 2012 | 294,827 | 316,998 | 362,321 | 321,897 | 297,203 | 305,100 | 302,773 | 299,698 | 314,677 | 400,189 | ||||||||||||
Cumulative (Deficiency) Redundancy | (17,518) | 25,451 | 77,851 | 108,376 | 112,209 | 73,516 | 86,785 | 59,332 | 29,843 | 21,367 | ||||||||||||
Ceded: | ||||||||||||||||||||||
Liability for Unpaid Losses | ||||||||||||||||||||||
and Loss Adjustment | ||||||||||||||||||||||
Expenses | 133,042 | 180,025 | 233,035 | 188,143 | 159,917 | 134,116 | 157,925 | 155,777 | 125,891 | 131,464 | 166,218 | |||||||||||
Liability Reestimated as of | ||||||||||||||||||||||
December 31, 2012 | 171,016 | 182,904 | 194,708 | 128,671 | 101,102 | 96,968 | 97,254 | 111,588 | 112,932 | 119,972 | ||||||||||||
Cumulative (Deficiency) Redundancy | (37,974) | (2,879) | 38,327 | 59,472 | 58,815 | 37,148 | 60,671 | 44,189 | 12,959 | 11,492 | ||||||||||||
Net: | ||||||||||||||||||||||
Liability for Unpaid Losses | ||||||||||||||||||||||
and Loss Adjustment | ||||||||||||||||||||||
Expenses | 144,267 | 162,424 | 207,137 | 242,130 | 249,495 | 244,500 | 231,633 | 203,253 | 218,629 | 290,092 | 289,236 | |||||||||||
Liability Reestimated as of | ||||||||||||||||||||||
December 31, 2012 | 123,811 | 134,094 | 167,613 | 193,226 | 196,101 | 208,132 | 205,519 | 188,110 | 201,745 | 280,217 | ||||||||||||
Cumulative Redundancy | 20,456 | 28,330 | 39,524 | 48,904 | 53,394 | 36,368 | 26,114 | 15,143 | 16,884 | 9,875 |
2015 | 2014 | |||||||
Corporate securities | 25.1 | % | 25.2 | % | ||||
State and municipal obligations | 16.4 | 16.7 | ||||||
U.S. government obligations | 15.4 | 14.9 | ||||||
Short-term and money markets | 10.7 | 9.2 | ||||||
Commercial mortgage-backed securities | 4.6 | 5.3 | ||||||
Foreign government obligations | 3.8 | 4.2 | ||||||
Residential mortgage-backed securities | 0.7 | 0.9 | ||||||
Total fixed maturities | 76.7 | 76.4 | ||||||
Limited partnerships (equity basis) | 11.3 | 12.0 | ||||||
Equity securities | 12.0 | 11.6 | ||||||
100.0 | % | 100.0 | % |
2012 | 2011 | ||||||||
State and municipal obligations | 31.0 | % | 31.7 | % | |||||
Corporate securities | 18.9 | 15.4 | |||||||
U.S. government obligations | 11.3 | 12.2 | |||||||
Short-term and money markets | 10.9 | 14.3 | |||||||
Residential mortgage-backed securities | 3.8 | 3.6 | |||||||
Foreign government obligations | 3.5 | 3.6 | |||||||
Commercial mortgage-backed securities | 1.8 | 1.9 | |||||||
Government sponsored entities | - | 0.1 | |||||||
Total fixed maturities | 81.2 | 82.8 | |||||||
Equity securities | 9.2 | 8.0 | |||||||
Limited partnerships (equity basis) | 9.6 | 9.2 | |||||||
100.0 | % | 100.0 | % |
2015 | 2014 | |||||||
Less than one year | 28.4 | % | 37.3 | % | ||||
1 to 5 years | 49.6 | 37.7 | ||||||
5 to 10 years | 8.8 | 10.9 | ||||||
More than 10 years | 13.2 | 14.1 | ||||||
100.0 | % | 100.0 | % | |||||
Average contractual life of portfolio (years) | 4.6 | 4.8 |
2012 | 2011 | ||||||||
Less than one year | 43.5 | % | 48.8 | % | |||||
1 to 5 years | 42.4 | 41.4 | |||||||
5 to 10 years | 5.1 | 2.8 | |||||||
More than 10 years | 9.0 | 7.0 | |||||||
100.0 | % | 100.0 | % | ||||||
Average life of portfolio (years) | 3.6 | 3.1 |
2012 | 2011 | 2015 | 2014 | ||||||||||
Before federal tax: | |||||||||||||
Investment income | 2.1 | % | 2.4 | % | 2.5 | % | 2.0 | % | |||||
Investment income plus investment gains (losses) | 3.6 | (0.9) | 2.3 | 4.3 | |||||||||
After federal tax: | |||||||||||||
Investment income | 1.6 | 1.8 | 1.8 | 1.5 | |||||||||
Investment income plus investment gains (losses) | 2.5 | (0.4) | 1.7 | 2.9 |
The Company operates in the Property and Casualty insurance industry where many of its competitors are larger with far greater resources. Further, this industry is heavily regulated. Changes in laws and regulations governing the insurance industry could have a significant impact on the |
● | The Company's main insurance subsidiary, Protective, currently has a financial strength rating of "A+" (Superior) by A.M. Best. A decline in the Company's rating below "A-" could adversely affect the Company's position in the insurance market, make it more difficult to market the Company's insurance products and cause a significant reduction in the Company's premiums and earnings. A downgrade could result in a loss of a number of insurance contracts the Company writes and in a substantial loss of business to other competitors. Financial ratings are an important factor influencing the competitive position of insurance companies. A.M. Best ratings, which are commonly used in the insurance industry, currently range from "A++" (Superior) to "F" (In Liquidation). The objective of A.M. Best's rating system is to provide potential policyholders and other interested parties an expert independent opinion of an insurer's financial strength and ability to meet ongoing obligations, including paying claims. This rating is subject to periodic review and may be revised downward, upward or revoked at the sole discretion of A.M. Best. |
The Company has two classes of common stock with unequal voting rights. The Company is effectively controlled by its principal stockholders and management, which limits other |
The Company limits its risk of loss from policies of insurance issued by its Insurance Subsidiaries through the purchase of reinsurance coverage from other insurance companies. Such reinsurance does not relieve the Company from its responsibility to policyholders should the reinsurers be unable to meet their obligations to the Company under the terms of the underlying reinsurance agreements. As a result, |
Operating in the Property and Casualty insurance industry, the Company is exposed to loss from policies of insurance issued to its policyholders. A large portion of the provision for losses recorded by the Company |
● |
The Company derives a significant percentage of its direct premium volume from |
The Company, through its Insurance Subsidiaries, requires collateral from its insureds covering the |
Given the |
The Company has a large portfolio of equity securities and limited partnership investments which can fluctuate in value with a wide variety of market conditions. A decline in the aggregate value of the equity securities and limited partnership investments would result in a commensurate decline in the |
● | Technological advances, including those specific to the transportation industry, could present the Company with added competitive risks. An increase in accident prevention technologies and the growth of autonomous or partially autonomous vehicles could reduce the amount of accidents over time and shift the liability from the owner of the vehicle to the manufacturer, which would cause automobile insurance to become a smaller portion of the Company's overall Property and Casualty insurance book of business. Innovations in telematics and the increase in usage-based information have become more important and will likely change the way premiums are determined in the future. These advances in technology could materially change the way products in the transportation industry are designed, priced and underwritten and it will take time for the Company to adjust to these changes. |
● | The Company's operations rely upon complex and expensive information technology systems for interacting with policyholders, brokers and employers. The Company's success involves providing customers with easy-to-use products and ensuring the Company's workforce has the technology to support the customer base. The pace at which information systems must be upgraded is continually increasing, requiring an ongoing commitment of significant resources to maintain or upgrade to current standards. The Company's success is reliant on developing and expanding the effectiveness of existing systems and continuing to enhance information systems that support the Company's operations in a cost effective manner. |
● | The Company relies upon the information technology systems and other operational systems and on the integrity and timeliness of data to run the businesses and service the customers. These systems may fail to operate properly or become disabled as a result of events or circumstances wholly or partly beyond our control. Despite our implementation of a variety of security measures, the information technology and other systems could be subject to physical or electronic break-ins, unauthorized tampering or other cyber security breaches, resulting in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to customers, or in theft of intellectual property or proprietary information. A failure to maintain proper security, confidentiality or privacy of sensitive data residing on such systems could delay or disrupt the Company's ability to do business and service customers, harm the Company's reputation, subject the Company to litigation, regulatory fines, a loss of customers and revenues or otherwise adversely affect the business. |
● | Changes in current accounting practices and future pronouncements may materially impact the Company's reported financial results. Developments in accounting practices may require the Company to incur considerable additional expenses to comply with such developments, particularly if the Company is required to prepare information relating to prior periods for comparative purposes or to apply the new requirements retroactively. The impact of changes in current accounting practices and future pronouncements cannot be predicted but may affect the calculation of net income, net equity and other historical financial statement line items that are important to users of the financial statements. Changes could also introduce significant volatility in the Company's results of operations, equity, business and insurer financial strength. |
Cash | Cash | |||||||||||||||||||||||||||||||||||||||
Class A | Class B | Dividends | Class A | Class B | Dividends | |||||||||||||||||||||||||||||||||||
High | Low | High | Low | Declared | High | Low | High | Low | Declared | |||||||||||||||||||||||||||||||
2012: | ||||||||||||||||||||||||||||||||||||||||
2015: | ||||||||||||||||||||||||||||||||||||||||
Fourth Quarter | $ | 24.41 | $ | 22.01 | $ | 24.50 | $ | 21.36 | $ | .25 | $ | 24.89 | $ | 22.43 | $ | 24.99 | $ | 21.27 | $ | .25 | ||||||||||||||||||||
Third Quarter | 23.99 | 21.43 | 24.33 | 21.71 | .25 | 24.40 | 21.04 | 23.69 | 21.85 | .25 | ||||||||||||||||||||||||||||||
Second Quarter | 25.80 | 20.51 | 23.50 | 20.41 | .25 | 24.40 | 22.50 | 24.36 | 22.02 | .25 | ||||||||||||||||||||||||||||||
First Quarter | 24.99 | 21.12 | 23.58 | 20.37 | .25 | 27.63 | 22.57 | 25.80 | 23.00 | .25 | ||||||||||||||||||||||||||||||
2011: | ||||||||||||||||||||||||||||||||||||||||
2014: | ||||||||||||||||||||||||||||||||||||||||
Fourth Quarter | 25.43 | 21.41 | 24.40 | 20.22 | .25 | 24.80 | 23.25 | 27.44 | 24.19 | .25 | ||||||||||||||||||||||||||||||
Third Quarter | 26.50 | 23.00 | 25.58 | 20.02 | .25 | 24.50 | 23.25 | 26.68 | 24.55 | .25 | ||||||||||||||||||||||||||||||
Second Quarter | 27.00 | 20.72 | 24.46 | 21.51 | .25 | 25.20 | 22.89 | 26.94 | 24.36 | .25 | ||||||||||||||||||||||||||||||
First Quarter | 22.39 | 19.99 | 24.54 | 21.22 | .25 | 24.88 | 22.06 | 27.24 | 23.40 | .25 |
Period Ending | ||||||||||||||||||||||||
Index | 12/31/10 | 12/31/11 | 12/31/12 | 12/31/13 | 12/31/14 | 12/31/15 | ||||||||||||||||||
Baldwin & Lyons, Inc. | 100.00 | 96.80 | 110.86 | 132.22 | 129.80 | 126.28 | ||||||||||||||||||
NASDAQ Insurance Index | 100.00 | 105.63 | 123.41 | 161.85 | 178.92 | 194.53 | ||||||||||||||||||
Russell 2000 | 100.00 | 95.82 | 111.49 | 154.78 | 162.35 | 155.18 |
Period Ending | ||||||||||||||||||||||||
Index | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 | 12/31/11 | 12/31/12 | ||||||||||||||||||
Baldwin & Lyons, Inc. | 100.00 | 69.48 | 98.94 | 103.59 | 100.27 | 114.84 | ||||||||||||||||||
NASDAQ Insurance Index | 100.00 | 90.40 | 93.38 | 110.31 | 116.52 | 136.14 | ||||||||||||||||||
Russell 2000 | 100.00 | 66.21 | 84.20 | 106.82 | 102.36 | 119.09 |
Year Ended December 31 | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Direct and assumed premiums written | $ | 341,286 | $ | 334,526 | $ | 295,802 | $ | 250,159 | $ | 221,942 | ||||||||||
Net premiums earned | 237,461 | 244,570 | 214,738 | 181,300 | 182,299 | |||||||||||||||
Net investment income | 9,930 | 10,729 | 11,335 | 13,971 | 17,063 | |||||||||||||||
Net gains (losses) on investments | 9,011 | (17,803 | ) | 16,485 | 30,816 | (47,750 | ) | |||||||||||||
Losses and loss expenses incurred | 138,088 | 215,555 | 145,952 | 99,351 | 115,752 | |||||||||||||||
Net income (loss) | 31,919 | (28,175 | ) | 25,015 | 44,802 | (7,713 | ) | |||||||||||||
Earnings per share -- net income (loss) 1 | 2.15 | (1.90 | ) | 1.69 | 3.04 | (.51 | ) | |||||||||||||
Cash dividends per share 2 | 1.00 | 1.00 | 2.25 | 1.00 | 1.00 | |||||||||||||||
Investment portfolio 3 | 681,856 | 637,681 | 635,174 | 622,085 | 545,491 | |||||||||||||||
Total assets | 983,024 | 905,294 | 837,946 | 851,315 | 777,743 | |||||||||||||||
Shareholders' equity | 346,712 | 319,061 | 368,735 | 372,943 | 330,067 | |||||||||||||||
Cost of treasury shares purchased | - | - | - | 880 | 8,908 | |||||||||||||||
Book value per share 1 | 23.25 | 21.49 | 24.90 | 25.31 | 22.32 | |||||||||||||||
Underwriting ratios 4 | ||||||||||||||||||||
Losses and loss expenses | 58.1 | % | 88.1 | % | 68.0 | % | 54.8 | % | 63.5 | % | ||||||||||
Underwriting expenses | 30.8 | % | 30.2 | % | 31.0 | % | 35.8 | % | 30.9 | % | ||||||||||
Combined | 88.9 | % | 118.3 | % | 99.0 | % | 90.6 | % | 94.4 | % |
Year Ended December 31 | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Direct and assumed premiums written | $ | 383,553 | $ | 382,388 | $ | 369,476 | $ | 341,286 | $ | 334,526 | ||||||||||
Net premiums earned | 263,335 | 261,627 | 252,743 | 237,461 | 244,570 | |||||||||||||||
Net investment income | 12,498 | 9,055 | 8,770 | 9,930 | 10,729 | |||||||||||||||
Net gains (losses) on investments | (1,261 | ) | 14,930 | 23,515 | 9,011 | (17,803 | ) | |||||||||||||
Losses and loss expenses incurred | 155,750 | 159,596 | 150,701 | 138,088 | 215,555 | |||||||||||||||
Net income (loss) | 23,283 | 29,717 | 36,588 | 31,919 | (28,175 | ) | ||||||||||||||
Earnings per share -- net income (loss) 1 | 1.55 | 1.98 | 2.45 | 2.15 | (1.90 | ) | ||||||||||||||
Cash dividends per share | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |||||||||||||||
Investment portfolio 2 | 729,877 | 757,421 | 703,259 | 681,856 | 637,681 | |||||||||||||||
Total assets | 1,085,771 | 1,144,247 | 1,072,270 | 983,024 | 905,294 | |||||||||||||||
Shareholders' equity | 394,498 | 399,496 | 381,724 | 346,712 | 319,061 | |||||||||||||||
Book value per share 1 | 26.25 | 26.67 | 25.57 | 23.25 | 21.49 | |||||||||||||||
Underwriting ratios 3 | ||||||||||||||||||||
Losses and loss expenses | 59.2 | % | 61.0 | % | 59.6 | % | 58.1 | % | 88.1 | % | ||||||||||
Underwriting expenses | 32.2 | % | 32.0 | % | 32.4 | % | 30.8 | % | 30.2 | % | ||||||||||
Combined | 91.4 | % | 93.0 | % | 92.0 | % | 88.9 | % | 118.3 | % |
3 Data is for all coverages combined, does not include fee income and is presented based upon U.S. generally accepted accounting principles. |
2015 | 2014 | |||||||
Fleet transportation | 55.7 | % | 58.8 | % | ||||
All other | 96.4 | 93.9 | ||||||
All lines | 59.2 | 61.0 |
2012 | 2011 | ||||
Fleet transportation | 66.8 | % | 68.8 | % | |
Private passenger automobile | 65.2 | 72.2 | |||
Commercial multi-peril | 45.9 | 50.8 | |||
Professional liability | 67.5 | 68.6 | |||
Property reinsurance | 11.1 | 202.9 | |||
Casualty reinsurance | 61.4 | 60.6 | |||
Residual market and all other | 98.2 | 144.3 | |||
All lines | 58.1 | 88.1 |
2011 | 2010 | ||||
Fleet transportation | 68.8 | % | 58.8 | % | |
Private passenger automobile | 72.2 | 85.0 | |||
Commercial multi-peril | 50.8 | 47.0 | |||
Professional liability | 68.6 | N/M | |||
Property reinsurance | 202.9 | 94.9 | |||
Casualty reinsurance | 60.6 | 68.0 | |||
Residual market and all other | 144.3 | 127.7 | |||
All lines | 88.1 | 68.0 |
2014 | 2013 | |||||||
Fleet transportation | 58.8 | % | 63.0 | % | ||||
All other | 93.9 | 84.8 | ||||||
All lines | 61.0 | 59.6 |
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Reinsurance recoverable | $ | 215,888 | $ | 220,221 | $ | 195,568 | ||||||||||||||||||
Premium ceded (reduction to premium earned) | $ | 103,712 | $ | 85,493 | $ | 73,119 | 133,548 | 119,248 | 113,882 | |||||||||||||||
Losses ceded (reduction to losses incurred) | 90,899 | 56,600 | 17,581 | 75,581 | 105,891 | 107,321 | ||||||||||||||||||
Commissions from reinsurers (reduction to operating expenses) | 15,185 | 11,503 | 10,081 | 28,956 | 23,797 | 20,822 |
Direct and Assumed | Net | Gross | Net | |||||||||||||||||||||||||||||
Line of Business (Segment) | 2012 | 2011 | 2012 | 2011 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Property and casualty insurance | $ | 373,667 | $ | 330,683 | $ | 221,569 | $ | 199,219 | $ | 464,305 | $ | 449,133 | $ | 254,299 | $ | 241,215 | ||||||||||||||||
Reinsurance | 81,787 | 90,873 | 67,667 | 90,873 | 49,291 | 56,969 | 47,454 | 54,369 | ||||||||||||||||||||||||
$ | 455,454 | $ | 421,556 | $ | 289,236 | $ | 290,092 | $ | 513,596 | $ | 506,102 | $ | 301,753 | $ | 295,584 | |||||||||||||||||
10 Point Increase | 10 Point Decrease | 20 Point Increase | 20 Point Decrease | |
Gross reserves | $ | $ | ||
Net reserves | $ | $ |
2012 | 2011 | 2015 | 2014 | |||||||||||||
Total deferred tax liabilities | $ | 27,551 | $ | 21,068 | $ | (27,833 | ) | $ | (37,493 | ) | ||||||
Total deferred tax assets | 18,973 | 28,187 | 16,635 | 17,520 | ||||||||||||
Net deferred tax assets (liabilities) | $ | (8,578 | ) | $ | 7,119 | |||||||||||
Net deferred tax liabilities | $ | (11,198 | ) | $ | (19,973 | ) |
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Fair | Interest | Equity | Fair | Interest | Equity | |||||||||||||||||||
Value | Rate Risk | Risk | Value | Rate Risk | Risk | |||||||||||||||||||
2012: | ||||||||||||||||||||||||
2015: | ||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. government obligations | $ | 70,742 | $ | (1,094 | ) | $ | - | $ | 103,245 | $ | (1,430 | ) | $ | - | ||||||||||
Residential mortgage-backed securities | 25,040 | (1,455 | ) | - | 4,776 | (103 | ) | - | ||||||||||||||||
Commercial mortgage-backed securities | 11,828 | (687 | ) | - | 30,595 | (655 | ) | - | ||||||||||||||||
State and municipal obligations | 194,865 | (2,379 | ) | - | 110,578 | (3,326 | ) | - | ||||||||||||||||
Corporate securities | 120,596 | (2,954 | ) | - | 164,025 | (5,030 | ) | - | ||||||||||||||||
Foreign government obligations | 22,598 | (679 | ) | - | 23,965 | (531 | ) | - | ||||||||||||||||
Total fixed maturities | 445,669 | (9,248 | ) | - | 437,184 | (11,075 | ) | - | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Financial institutions | 12,394 | - | (1,239 | ) | 21,694 | - | (2,169 | ) | ||||||||||||||||
Industrial & miscellaneous | 95,188 | - | (9,519 | ) | 123,804 | - | (12,380 | ) | ||||||||||||||||
Total equity securities | 107,582 | - | (10,758 | ) | 145,498 | - | (14,549 | ) | ||||||||||||||||
Limited partnerships | 59,954 | - | (4,050 | ) | 75,458 | - | (5,349 | ) | ||||||||||||||||
Short-term | 4,201 | - | - | 2,220 | - | - | ||||||||||||||||||
Total fixed maturities and other investments | $ | 617,406 | $ | (9,248 | ) | $ | (14,808 | ) | ||||||||||||||||
Total | $ | 660,360 | $ | (11,075 | ) | $ | (19,898 | ) | ||||||||||||||||
2011: | ||||||||||||||||||||||||
2014: | ||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. government obligations | $ | 73,137 | $ | (1,000 | ) | $ | - | $ | 101,094 | $ | (1,208 | ) | $ | - | ||||||||||
Government sponsored entities | 349 | (3 | ) | - | ||||||||||||||||||||
Residential mortgage-backed securities | 21,872 | (542 | ) | - | 6,066 | (198 | ) | - | ||||||||||||||||
Commercial mortgage-backed securities | 11,300 | (280 | ) | - | 36,440 | (1,183 | ) | - | ||||||||||||||||
State and municipal obligations | 190,035 | (2,983 | ) | - | 113,777 | (3,224 | ) | - | ||||||||||||||||
Corporate securities | 91,646 | (1,785 | ) | - | 166,966 | (5,646 | ) | - | ||||||||||||||||
Foreign government obligations | 21,121 | (652 | ) | - | 27,466 | (922 | ) | - | ||||||||||||||||
Total fixed maturities | 409,460 | (7,245 | ) | - | 451,809 | (12,381 | ) | - | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Financial institutions | 9,428 | - | (943 | ) | 25,343 | - | (2,534 | ) | ||||||||||||||||
Industrial & miscellaneous | 78,657 | - | (7,866 | ) | 136,764 | - | (13,676 | ) | ||||||||||||||||
Total equity securities | 88,085 | - | (8,809 | ) | 162,107 | - | (16,210 | ) | ||||||||||||||||
Limited partnerships | 54,705 | - | (3,747 | ) | 81,230 | - | (5,450 | ) | ||||||||||||||||
Short-term | 3,675 | - | - | 2,966 | - | - | ||||||||||||||||||
Total fixed maturities and other investments | $ | 555,925 | $ | (7,245 | ) | $ | (12,556 | ) | ||||||||||||||||
Total | $ | 698,112 | $ | (12,381 | ) | $ | (21,660 | ) |
Increase (Decrease) | Increase (Decrease) | |||||||||||||||||||||||
Fair | Interest | Equity | Fair | Interest | Equity | |||||||||||||||||||
Value | Rate Risk | Risk | Value | Rate Risk | Risk | |||||||||||||||||||
2012: | ||||||||||||||||||||||||
2015: | ||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. government obligations | $ | 70,742 | $ | (1,647 | ) | $ | - | $ | 103,245 | $ | (2,144 | ) | $ | - | ||||||||||
Residential mortgage-backed securities | 25,040 | (2,106 | ) | - | 4,776 | (153 | ) | - | ||||||||||||||||
Commercial mortgage-backed securities | 11,828 | (995 | ) | - | 30,595 | (983 | ) | - | ||||||||||||||||
State and municipal obligations | 194,865 | (3,547 | ) | - | 110,578 | (4,988 | ) | - | ||||||||||||||||
Corporate securities | 120,596 | (4,379 | ) | - | 164,025 | (7,547 | ) | - | ||||||||||||||||
Foreign government obligations | 22,598 | (1,011 | ) | - | 23,965 | (797 | ) | - | ||||||||||||||||
Total fixed maturities | 445,669 | (13,685 | ) | - | 437,184 | (16,612 | ) | - | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Financial institutions | 12,394 | - | (1,859 | ) | 21,694 | - | (3,254 | ) | ||||||||||||||||
Industrial & miscellaneous | 95,188 | - | (14,278 | ) | 123,804 | - | (18,571 | ) | ||||||||||||||||
Total equity securities | 107,582 | - | (16,137 | ) | 145,498 | - | (21,825 | ) | ||||||||||||||||
Limited partnerships | 59,954 | - | (6,076 | ) | 75,458 | - | (8,023 | ) | ||||||||||||||||
Short-term | 4,201 | - | - | 2,220 | - | - | ||||||||||||||||||
Total fixed maturities and other investments | $ | 617,406 | $ | (13,685 | ) | $ | (22,213 | ) | ||||||||||||||||
Total | $ | 660,360 | $ | (16,612 | ) | $ | (29,848 | ) | ||||||||||||||||
2011: | ||||||||||||||||||||||||
2014: | ||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||
U.S. government obligations | $ | 73,137 | $ | (1,491 | ) | $ | - | $ | 101,094 | $ | (1,800 | ) | $ | - | ||||||||||
Government sponsored entities | 349 | (5 | ) | - | ||||||||||||||||||||
Residential mortgage-backed securities | 21,872 | (891 | ) | - | 6,066 | (297 | ) | - | ||||||||||||||||
Commercial mortgage-backed securities | 11,300 | (461 | ) | - | 36,440 | (1,787 | ) | - | ||||||||||||||||
State and municipal obligations | 190,035 | (4,356 | ) | - | 113,777 | (4,724 | ) | - | ||||||||||||||||
Corporate securities | 91,646 | (2,657 | ) | - | 166,966 | (8,333 | ) | - | ||||||||||||||||
Foreign government obligations | 21,121 | (931 | ) | - | 27,466 | (1,366 | ) | - | ||||||||||||||||
Total fixed maturities | 409,460 | (10,792 | ) | - | 451,809 | (18,307 | ) | - | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Financial institutions | 9,428 | - | (1,414 | ) | 25,343 | - | (3,801 | ) | ||||||||||||||||
Industrial & miscellaneous | 78,657 | - | (11,799 | ) | 136,764 | - | (20,515 | ) | ||||||||||||||||
Total equity securities | 88,085 | - | (13,213 | ) | 162,107 | - | (24,316 | ) | ||||||||||||||||
Limited partnerships | 54,705 | - | (5,620 | ) | 81,230 | - | (8,175 | ) | ||||||||||||||||
Short-term | 3,675 | - | - | 2,966 | - | - | ||||||||||||||||||
Total fixed maturities and other investments | $ | 555,925 | $ | (10,792 | ) | $ | (18,833 | ) | ||||||||||||||||
Total | $ | 698,112 | $ | (18,307 | ) | $ | (32,491 | ) |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||||
Total | Less than 1 year | 1 - 3 Years | 3 - 5 Years | More Than 5 Years | Total | Less than 1 year | 1 - 3 Years | 3 - 5 Years | More Than 5 Years | |||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||||
Loss and loss expense reserves | $ | 455.5 | $ | 157.1 | $ | 130.7 | $ | 53.3 | $ | 114.4 | $ | 513.6 | $ | 174.6 | $ | 174.6 | $ | 63.7 | $ | 100.7 | ||||||||||||||||||||
Investment commitments | 7.8 | 7.8 | - | - | - | 17.5 | 17.5 | - | - | - | ||||||||||||||||||||||||||||||
Operating leases | 1.1 | 1.0 | 0.1 | - | - | 0.3 | 0.2 | 0.1 | - | - | ||||||||||||||||||||||||||||||
Borrowings | 10.0 | 10.0 | - | - | - | 20.0 | 20.0 | - | - | - | ||||||||||||||||||||||||||||||
Total | $ | 474.4 | $ | 175.9 | $ | 130.8 | $ | 53.3 | $ | 114.4 | $ | 551.4 | $ | 212.3 | $ | 174.7 | $ | 63.7 | $ | 100.7 |
Report of Independent Registered Public Accounting Firm |
Consolidated Balance Sheets | ||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||
December 31 | ||||||||||
2012 | 2011 | |||||||||
(dollars in thousands) | ||||||||||
Assets | ||||||||||
Investments: | ||||||||||
Fixed maturities | $ | 445,669 | $ | 409,460 | ||||||
Equity securities | 107,582 | 88,085 | ||||||||
Limited partnerships | 59,954 | 54,705 | ||||||||
Short-term and other | 4,201 | 3,675 | ||||||||
617,406 | 555,925 | |||||||||
Cash and cash equivalents | 71,549 | 89,726 | ||||||||
Accounts receivable--less allowance (2012, $538; 2011, $659) | 83,400 | 74,094 | ||||||||
Accrued investment income | 4,387 | 4,337 | ||||||||
Reinsurance recoverable | 175,191 | 138,404 | ||||||||
Prepaid reinsurance premiums | 2,679 | 3,059 | ||||||||
Deferred policy acquisition costs | 3,091 | 4,578 | ||||||||
Property and equipment--less accumulated depreciation | ||||||||||
(2012, $15,184; 2011, $13,486) | 12,257 | 12,991 | ||||||||
Other assets | 9,818 | 11,707 | ||||||||
Current federal income taxes recoverable | 3,246 | 3,354 | ||||||||
Deferred federal income taxes | - | 7,119 | ||||||||
$ | 983,024 | $ | 905,294 | |||||||
Liabilities and Shareholders' Equity | ||||||||||
Reserves: | ||||||||||
Losses and loss expenses | $ | 455,454 | $ | 421,556 | ||||||
Unearned premiums | 37,273 | 39,919 | ||||||||
492,727 | 461,475 | |||||||||
Reinsurance payable | 32,798 | 28,330 | ||||||||
Short-term borrowings | 10,000 | 10,000 | ||||||||
Depository liabilities | 42,503 | 36,436 | ||||||||
Accounts payable and other liabilities | 49,706 | 49,992 | ||||||||
Deferred federal income taxes | 8,578 | - | ||||||||
636,312 | 586,233 | |||||||||
Shareholders' equity: | ||||||||||
Common stock, no par value: | ||||||||||
Class A voting -- authorized 3,000,000 shares; | ||||||||||
outstanding -- 2012 - 2,623,109; 2011 - 2,623,109 shares | 112 | 112 | ||||||||
Class B non-voting -- authorized 20,000,000 shares; | ||||||||||
outstanding -- 2012 - 12,290,035; 2011 - 12,225,348 shares | 524 | 522 | ||||||||
Additional paid-in capital | 50,275 | 48,751 | ||||||||
Unrealized net gains on investments | 35,467 | 26,592 | ||||||||
Foreign exchange adjustment | 1,976 | 1,759 | ||||||||
Retained earnings | 258,358 | 241,325 | ||||||||
346,712 | 319,061 | |||||||||
$ | 983,024 | $ | 905,294 |
Consolidated Balance Sheets | ||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||
December 31 | ||||||||||
2015 | 2014 | |||||||||
(dollars in thousands) | ||||||||||
Assets | ||||||||||
Investments: | ||||||||||
Fixed maturities (Amortized cost: 2015, $442,578; 2014, $455,385) | $ | 437,184 | $ | 451,809 | ||||||
Equity securities (Cost: 2015, $80,221; 2014, $78,778) | 145,498 | 162,107 | ||||||||
Limited partnerships (Affiliated: 2015, $45,009; 2014, $46,987) | 75,458 | 81,230 | ||||||||
Short-term and other | 2,220 | 2,966 | ||||||||
660,360 | 698,112 | |||||||||
Cash and cash equivalents | 73,538 | 64,632 | ||||||||
Accounts receivable--less allowance (2015, $600; 2014, $605) | 66,522 | 98,144 | ||||||||
Accrued investment income | 3,989 | 3,682 | ||||||||
Reinsurance recoverable | 215,888 | 220,221 | ||||||||
Prepaid reinsurance premiums | 3,176 | 2,274 | ||||||||
Deferred policy acquisition costs | 1,443 | 2,263 | ||||||||
Property and equipment--less accumulated depreciation | ||||||||||
(2015, $14,768; 2014, $13,777) | 46,144 | 43,815 | ||||||||
Other assets | 11,009 | 9,413 | ||||||||
Current federal income taxes recoverable | 3,702 | 1,691 | ||||||||
$ | 1,085,771 | $ | 1,144,247 | |||||||
Liabilities and Shareholders' Equity | ||||||||||
Reserves: | ||||||||||
Losses and loss expenses | $ | 513,596 | $ | 506,102 | ||||||
Unearned premiums | 25,291 | 35,019 | ||||||||
538,887 | 541,121 | |||||||||
Reinsurance payable | 47,565 | 46,338 | ||||||||
Short-term borrowings | 20,000 | 20,000 | ||||||||
Depository liabilities | 16,847 | 48,893 | ||||||||
Accounts payable and other liabilities | 56,776 | 68,426 | ||||||||
Deferred federal income taxes | 11,198 | 19,973 | ||||||||
691,273 | 744,751 | |||||||||
Shareholders' equity: | ||||||||||
Common stock, no par value: | ||||||||||
Class A voting -- authorized 3,000,000 shares; | ||||||||||
outstanding -- 2015 - 2,623,109; 2014 - 2,623,109 shares | 112 | 112 | ||||||||
Class B non-voting -- authorized 20,000,000 shares; | ||||||||||
outstanding -- 2015 - 12,402,941; 2014 - 12,356,389 shares | 529 | 527 | ||||||||
Additional paid-in capital | 52,946 | 51,854 | ||||||||
Unrealized net gains on investments | 38,924 | 51,840 | ||||||||
Foreign exchange adjustment | (1,066 | ) | 390 | |||||||
Retained earnings | 303,053 | 294,773 | ||||||||
394,498 | 399,496 | |||||||||
$ | 1,085,771 | $ | 1,144,247 |
Consolidated Statements of Operations | ||||||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
(dollars in thousands, except per share data) | (dollars in thousands, except per share data) | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Net premiums earned | $ | 237,461 | $ | 244,570 | $ | 214,738 | $ | 263,335 | $ | 261,627 | $ | 252,743 | ||||||||||||
Net investment income | 9,930 | 10,729 | 11,335 | 12,498 | 9,055 | 8,770 | ||||||||||||||||||
Commissions and other income | 5,722 | 6,098 | 6,911 | 5,703 | 6,430 | 5,944 | ||||||||||||||||||
Net realized gains (losses) on investments, excluding | ||||||||||||||||||||||||
Net realized gains on investments, excluding | ||||||||||||||||||||||||
impairment losses | 9,899 | (15,897 | ) | 16,527 | 6,439 | 15,619 | 24,257 | |||||||||||||||||
Total other-than-temporary impairment losses on investments | (894 | ) | (1,987 | ) | (42 | ) | (7,700 | ) | (689 | ) | (744 | ) | ||||||||||||
Portion of other-than-temporary impairment losses | ||||||||||||||||||||||||
recognized in other comprehensive income | 6 | 81 | - | - | - | 2 | ||||||||||||||||||
Net realized gains (losses) on investments | 9,011 | (17,803 | ) | 16,485 | (1,261 | ) | 14,930 | 23,515 | ||||||||||||||||
262,124 | 243,594 | 249,469 | 280,275 | 292,042 | 290,972 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Losses and loss expenses incurred | 138,088 | 215,555 | 145,952 | 155,750 | 159,596 | 150,701 | ||||||||||||||||||
Other operating expenses | 77,430 | 73,328 | 68,704 | 90,573 | 88,048 | 85,361 | ||||||||||||||||||
215,518 | 288,883 | 214,656 | 246,323 | 247,644 | 236,062 | |||||||||||||||||||
Income (loss) before federal income taxes | 46,606 | (45,289 | ) | 34,813 | ||||||||||||||||||||
Income before federal income taxes | 33,952 | 44,398 | 54,910 | |||||||||||||||||||||
Federal income taxes (benefits) | 14,687 | (17,114 | ) | 9,798 | ||||||||||||||||||||
Net income (loss) | $ | 31,919 | $ | (28,175 | ) | $ | 25,015 | |||||||||||||||||
Federal income taxes | 10,669 | 14,681 | 18,322 | |||||||||||||||||||||
Net income | $ | 23,283 | $ | 29,717 | $ | 36,588 | ||||||||||||||||||
Per share data: | ||||||||||||||||||||||||
Basic and diluted earnings (losses) | $ | 2.15 | $ | (1.90 | ) | $ | 1.69 | |||||||||||||||||
Cash dividends paid | $ | 1.00 | $ | 1.00 | $ | 2.25 | ||||||||||||||||||
Basic and diluted earnings | $ | 1.55 | $ | 1.98 | $ | 2.45 |
Consolidated Statements of Comprehensive Income | ||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
(dollars in thousands) | ||||||||||||
Net income | $ | 23,283 | $ | 29,717 | $ | 36,588 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized net gains (losses) on securities: | ||||||||||||
Unrealized holding net gains (losses) arising during the period | (12,639 | ) | 7,835 | 23,711 | ||||||||
Less: reclassification adjustment for net losses | ||||||||||||
included in net income | (277 | ) | (5,084 | ) | (10,089 | ) | ||||||
(12,916 | ) | 2,751 | 13,622 | |||||||||
Foreign currency translation adjustments | (1,456 | ) | (1,011 | ) | (575 | ) | ||||||
Other comprehensive income (loss) | (14,372 | ) | 1,740 | 13,047 | ||||||||
Comprehensive income | $ | 8,911 | $ | 31,457 | $ | 49,635 |
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(dollars in thousands) | ||||||||||||
Net income (loss) | $ | 31,919 | $ | (28,175 | ) | $ | 25,015 | |||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized net gains (losses) on securities: | ||||||||||||
Unrealized holding net gains (losses) arising during the period | 10,148 | (4,645 | ) | 7,390 | ||||||||
Less: reclassification adjustment for net gains (losses) | ||||||||||||
included in net income (loss) | 1,273 | 2,657 | 5,382 | |||||||||
8,875 | (7,302 | ) | 2,008 | |||||||||
Foreign currency translation adjustments | 217 | (230 | ) | 441 | ||||||||
Other comprehensive income (loss) | 9,092 | (7,532 | ) | 2,449 | ||||||||
Comprehensive income (loss) | $ | 41,011 | $ | (35,707 | ) | $ | 27,464 |
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||||||
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||||||
Shareholders' equity at beginning of year | $ | 319,061 | $ | 368,735 | $ | 372,943 | $ | 399,496 | $ | 381,724 | $ | 346,712 | ||||||||||||
Net income (loss) | 31,919 | (28,175 | ) | 25,015 | ||||||||||||||||||||
Net income | 23,283 | 29,717 | 36,588 | |||||||||||||||||||||
Other comprehensive income (loss) | 9,092 | (7,532 | ) | 2,449 | (14,372 | ) | 1,740 | 13,047 | ||||||||||||||||
Cash dividends paid to shareholders | (14,886 | ) | (14,846 | ) | (33,212 | ) | (15,003 | ) | (14,947 | ) | (14,943 | ) | ||||||||||||
Issuance of common stock | 1,526 | 879 | 1,540 | 1,094 | 1,262 | 320 | ||||||||||||||||||
Shareholders' equity at end of year: | $ | 346,712 | $ | 319,061 | $ | 368,735 | $ | 394,498 | $ | 399,496 | $ | 381,724 |
Consolidated Statements of Cash Flows | ||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
(dollars in thousands) | ||||||||||||
Operating activities | ||||||||||||
Net income | $ | 23,283 | $ | 29,717 | $ | 36,588 | ||||||
Adjustments to reconcile net income to net cash | ||||||||||||
provided by operating activities: | ||||||||||||
Change in accounts receivable and unearned premium | 22,939 | 3,230 | (16,488 | ) | ||||||||
Change in accrued investment income | (307 | ) | (234 | ) | 939 | |||||||
Change in reinsurance recoverable on paid losses | 4,458 | (2,785 | ) | (1,618 | ) | |||||||
Change in losses and loss expenses reserves net of reinsurance | 6,325 | 7,545 | (1,264 | ) | ||||||||
Change in other assets, other liabilities and current income taxes | (28,299 | ) | (4,847 | ) | 29,892 | |||||||
Amortization of net policy acquisition costs | 21,314 | 25,075 | 26,592 | |||||||||
Net policy acquisition costs deferred | (20,495 | ) | (25,019 | ) | (25,819 | ) | ||||||
Provision for deferred income taxes (benefits) | (1,819 | ) | 1,640 | 939 | ||||||||
Bond amortization | 3,388 | 4,235 | 5,068 | |||||||||
(Gain) loss on sale of property | 18 | 474 | (27 | ) | ||||||||
Depreciation | 5,037 | 4,797 | 4,300 | |||||||||
Net realized (gains) losses on investments | 1,261 | (14,930 | ) | (23,515 | ) | |||||||
Compensation expense related to restricted stock | 1,094 | 1,262 | 320 | |||||||||
Net cash provided by operating activities | 38,197 | 30,160 | 35,907 | |||||||||
Investing activities | ||||||||||||
Purchases of fixed maturities and equity securities | (342,592 | ) | (288,283 | ) | (369,259 | ) | ||||||
Purchases of limited partnership interests | (409 | ) | (6,886 | ) | (3,568 | ) | ||||||
Distributions from limited partnerships | 4,494 | 1,752 | 2,528 | |||||||||
Proceeds from maturities | 161,706 | 98,714 | 129,113 | |||||||||
Proceeds from sales of fixed maturities | 117,338 | 167,406 | 207,723 | |||||||||
Proceeds from sales of equity securities | 53,270 | 19,263 | 29,858 | |||||||||
Net sales (purchases) of short-term investments | 746 | 1,925 | (690 | ) | ||||||||
Purchases of property and equipment | (7,662 | ) | (13,451 | ) | (28,607 | ) | ||||||
Proceeds from disposals of property and equipment | 277 | 693 | 261 | |||||||||
Net cash used in investing activities | (12,832 | ) | (18,867 | ) | (32,641 | ) | ||||||
Financing activities | ||||||||||||
Dividends paid to shareholders | (15,003 | ) | (14,947 | ) | (14,943 | ) | ||||||
Drawings on line of credit | - | 10,000 | - | |||||||||
Net cash used in financing activities | (15,003 | ) | (4,947 | ) | (14,943 | ) | ||||||
Effect of foreign exchange rates on cash and cash equivalents | (1,456 | ) | (1,011 | ) | (575 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 8,906 | 5,335 | (12,252 | ) | ||||||||
Cash and cash equivalents at beginning of year | 64,632 | 59,297 | 71,549 | |||||||||
Cash and cash equivalents at end of year | $ | 73,538 | $ | 64,632 | $ | 59,297 |
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(dollars in thousands) | ||||||||||||
Operating activities | ||||||||||||
Net income (loss) | $ | 31,919 | $ | (28,175 | ) | $ | 25,015 | |||||
Adjustments to reconcile net income (loss) to net cash | ||||||||||||
provided by operating activities: | ||||||||||||
Change in accounts receivable and unearned premium | (13,089 | ) | (27,227 | ) | (6,511 | ) | ||||||
Change in accrued investment income | (50 | ) | (291 | ) | (260 | ) | ||||||
Change in reinsurance recoverable on paid losses | 537 | 698 | (1,787 | ) | ||||||||
Change in losses and loss expenses reserves net of reinsurance | (2,289 | ) | 71,348 | 15,499 | ||||||||
Change in other assets, other liabilities and current income taxes | 29,850 | 18,430 | 24,984 | |||||||||
Amortization of net policy acquisition costs | 26,772 | 29,209 | 23,967 | |||||||||
Net policy acquisition costs deferred | (25,285 | ) | (28,961 | ) | (23,888 | ) | ||||||
Provision for deferred income taxes | 4,299 | (9,340 | ) | 46 | ||||||||
Bond amortization | 6,055 | 5,673 | 4,211 | |||||||||
(Gain) loss on sale of property | 10 | (36 | ) | 5 | ||||||||
Depreciation | 4,550 | 4,274 | 4,013 | |||||||||
Net realized (gains) losses on investments | (9,011 | ) | 17,803 | (16,485 | ) | |||||||
Compensation expense related to restricted stock | 1,526 | 879 | 674 | |||||||||
Net cash provided by operating activities | 55,794 | 54,284 | 49,483 | |||||||||
Investing activities | ||||||||||||
Purchases of fixed maturities and equity securities | (320,434 | ) | (270,696 | ) | (346,435 | ) | ||||||
Purchases of limited partnership interests | (2,154 | ) | - | (7 | ) | |||||||
Distributions from limited partnerships | 3,957 | 757 | 297 | |||||||||
Proceeds from maturities | 150,652 | 144,745 | 166,307 | |||||||||
Proceeds from sales of fixed maturities | 103,106 | 128,018 | 105,206 | |||||||||
Proceeds from sales of equity securities | 8,674 | 16,883 | 15,743 | |||||||||
Net sales (purchases) of short-term investments | (529 | ) | 841 | (160 | ) | |||||||
Decrease in principal of notes receivable from employees | 1,252 | 106 | 611 | |||||||||
Purchases of property and equipment | (4,054 | ) | (3,488 | ) | (4,767 | ) | ||||||
Proceeds from disposals of property and equipment | 228 | 129 | 212 | |||||||||
Net cash provided by (used in) investing activities | (59,302 | ) | 17,295 | (62,993 | ) | |||||||
Financing activities | ||||||||||||
Dividends paid to shareholders | (14,886 | ) | (14,846 | ) | (33,212 | ) | ||||||
Drawings on line of credit | - | - | 8,000 | |||||||||
Repayment on line of credit | - | (5,000 | ) | (3,000 | ) | |||||||
Net cash used in financing activities | (14,886 | ) | (19,846 | ) | (28,212 | ) | ||||||
Effect of foreign exchange rates on cash and cash equivalents | 217 | (230 | ) | 441 | ||||||||
Increase (decrease) in cash and cash equivalents | (18,177 | ) | 51,503 | (41,281 | ) | |||||||
Cash and cash equivalents at beginning of year | 89,726 | 38,223 | 79,504 | |||||||||
Cash and cash equivalents at end of year | $ | 71,549 | $ | 89,726 | $ | 38,223 |
Note B - Investments | ||||||||||||||||||||
The following is a summary of available for sale securities at December 31: | ||||||||||||||||||||
Net | ||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | |||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | ||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | ||||||||||||||||
2012: | ||||||||||||||||||||
U.S. government obligations | $ | 70,742 | $ | 70,720 | $ | 43 | $ | (21 | ) | $ | 22 | |||||||||
Residential mortgage-backed securities | 25,040 | 23,954 | 1,218 | (132 | ) | 1,086 | ||||||||||||||
Commercial mortgage-backed securities | 11,828 | 11,006 | 849 | (27 | ) | 822 | ||||||||||||||
State and municipal obligations | 194,865 | 194,258 | 757 | (150 | ) | 607 | ||||||||||||||
Corporate securities | 120,596 | 118,574 | 2,923 | (901 | ) | 2,022 | ||||||||||||||
Foreign government obligations | 22,598 | 22,047 | 602 | (51 | ) | 551 | ||||||||||||||
Total fixed maturities | 445,669 | 440,559 | 6,392 | (1,282 | ) | 5,110 | ||||||||||||||
Equity securities: | ||||||||||||||||||||
Financial institutions | 12,394 | 5,925 | 6,542 | (73 | ) | 6,469 | ||||||||||||||
Industrial & miscellaneous | 95,188 | 52,202 | 44,568 | (1,582 | ) | 42,986 | ||||||||||||||
Total equity securities | 107,582 | 58,127 | 51,110 | (1,655 | ) | 49,455 | ||||||||||||||
Total available-for-sale securities | $ | 553,251 | $ | 498,686 | $ | 57,502 | $ | (2,937 | ) | 54,565 | ||||||||||
Applicable federal income taxes | (19,098 | ) | ||||||||||||||||||
Net unrealized gains - net of tax | $ | 35,467 | ||||||||||||||||||
2011: | ||||||||||||||||||||
U.S. government obligations | $ | 73,137 | $ | 73,009 | $ | 139 | $ | (11 | ) | $ | 128 | |||||||||
Government sponsored entities | 349 | 345 | 4 | - | 4 | |||||||||||||||
Residential mortgage-backed securities | 21,872 | 21,778 | 619 | (525 | ) | 94 | ||||||||||||||
Commercial mortgage-backed securities | 11,300 | 11,388 | 116 | (204 | ) | (88 | ) | |||||||||||||
State and municipal obligations | 190,035 | 188,991 | 1,275 | (231 | ) | 1,044 | ||||||||||||||
Corporate securities | 91,646 | 91,949 | 1,429 | (1,732 | ) | (303 | ) | |||||||||||||
Foreign government obligations | 21,121 | 21,483 | 168 | (530 | ) | (362 | ) | |||||||||||||
Total fixed maturities | 409,460 | 408,943 | 3,750 | (3,233 | ) | 517 | ||||||||||||||
Equity securities: | ||||||||||||||||||||
Financial institutions | 9,428 | 4,955 | 4,778 | (305 | ) | 4,473 | ||||||||||||||
Industrial & miscellaneous | 78,657 | 42,736 | 36,921 | (1,000 | ) | 35,921 | ||||||||||||||
Total equity securities | 88,085 | 47,691 | 41,699 | (1,305 | ) | 40,394 | ||||||||||||||
Total available-for-sale securities | $ | 497,545 | $ | 456,634 | $ | 45,449 | $ | (4,538 | ) | 40,911 | ||||||||||
Applicable federal income taxes | (14,319 | ) | ||||||||||||||||||
Net unrealized gains - net of tax | $ | 26,592 |
Note B - Investments | ||||||||||||||||||||
The following is a summary of available for sale securities at December 31: | ||||||||||||||||||||
Net | ||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | |||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | ||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | ||||||||||||||||
2015: | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
U.S. government obligations | $ | 103,245 | $ | 103,448 | $ | 56 | $ | (259 | ) | $ | (203 | ) | ||||||||
Residential mortgage-backed securities | 4,776 | 4,668 | 162 | (54 | ) | 108 | ||||||||||||||
Commercial mortgage-backed securities | 30,595 | 30,977 | 247 | (629 | ) | (382 | ) | |||||||||||||
State and municipal obligations | 110,578 | 109,932 | 806 | (160 | ) | 646 | ||||||||||||||
Corporate securities | 164,025 | 168,137 | 2,445 | (6,557 | ) | (4,112 | ) | |||||||||||||
Foreign government obligations | 23,965 | 25,416 | 404 | (1,855 | ) | (1,451 | ) | |||||||||||||
Total fixed maturities | 437,184 | 442,578 | 4,120 | (9,514 | ) | (5,394 | ) | |||||||||||||
Equity securities: | ||||||||||||||||||||
Financial institutions | 21,694 | 10,836 | 11,069 | (211 | ) | 10,858 | ||||||||||||||
Industrial & miscellaneous | 123,804 | 69,385 | 59,338 | (4,919 | ) | 54,419 | ||||||||||||||
Total equity securities | 145,498 | 80,221 | 70,407 | (5,130 | ) | 65,277 | ||||||||||||||
Total | $ | 582,682 | $ | 522,799 | $ | 74,527 | $ | (14,644 | ) | 59,883 | ||||||||||
Applicable federal income taxes | (20,959 | ) | ||||||||||||||||||
Net unrealized gains - net of tax | $ | 38,924 | ||||||||||||||||||
2014: | ||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | 101,058 | $ | 108 | $ | (72 | ) | $ | 36 | |||||||||
Residential mortgage-backed securities | 6,066 | 5,830 | 273 | (37 | ) | 236 | ||||||||||||||
Commercial mortgage-backed securities | 36,440 | 36,210 | 630 | (400 | ) | 230 | ||||||||||||||
State and municipal obligations | 113,777 | 113,133 | 784 | (140 | ) | 644 | ||||||||||||||
Corporate securities | 166,966 | 170,822 | 2,005 | (5,861 | ) | (3,856 | ) | |||||||||||||
Foreign government obligations | 27,466 | 28,332 | 114 | (980 | ) | (866 | ) | |||||||||||||
Total fixed maturities | 451,809 | 455,385 | 3,914 | (7,490 | ) | (3,576 | ) | |||||||||||||
Equity securities: | ||||||||||||||||||||
Financial institutions | 25,343 | 10,100 | 15,303 | (60 | ) | 15,243 | ||||||||||||||
Industrial & miscellaneous | 136,764 | 68,678 | 70,260 | (2,174 | ) | 68,086 | ||||||||||||||
Total equity securities | 162,107 | 78,778 | 85,563 | (2,234 | ) | 83,329 | ||||||||||||||
Total | $ | 613,916 | $ | 534,163 | $ | 89,477 | $ | (9,724 | ) | 79,753 | ||||||||||
Applicable federal income taxes | (27,913 | ) | ||||||||||||||||||
Net unrealized gains - net of tax | $ | 51,840 |
2015 | 2014 | |||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
12 months or less | 328 | $ | 205,475 | $ | (5,070 | ) | 591 | $ | 176,756 | $ | (6,083 | ) | ||||||||||||
Greater than 12 months | 168 | 108,043 | (4,444 | ) | 140 | 27,667 | (1,407 | ) | ||||||||||||||||
Total fixed maturities | 496 | 313,518 | (9,514 | ) | 731 | 204,423 | (7,490 | ) | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
12 months or less | 73 | 26,517 | (5,130 | ) | 33 | 13,538 | (2,170 | ) | ||||||||||||||||
Greater than 12 months | - | - | - | 3 | 686 | (64 | ) | |||||||||||||||||
Total equity securities | 73 | 26,517 | (5,130 | ) | 36 | 14,224 | (2,234 | ) | ||||||||||||||||
Total | 569 | $ | 340,035 | $ | (14,644 | ) | 767 | $ | 218,647 | $ | (9,724 | ) |
2012 | 2011 | |||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||
12 months or less | 170 | $ | 90,607 | $ | (483 | ) | 206 | $ | 86,470 | $ | (2,303 | ) | ||||||||||||
Greater than 12 months | 58 | 19,283 | (799 | ) | 44 | 11,930 | (930 | ) | ||||||||||||||||
Total fixed maturities | 228 | 109,890 | (1,282 | ) | 250 | 98,400 | (3,233 | ) | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
12 months or less | 20 | 6,955 | (842 | ) | 35 | 8,317 | (1,275 | ) | ||||||||||||||||
Greater than 12 months | 11 | 6,640 | (813 | ) | 4 | 216 | (30 | ) | ||||||||||||||||
Total equity securities | 31 | 13,595 | (1,655 | ) | 39 | 8,533 | (1,305 | ) | ||||||||||||||||
Total | 259 | $ | 123,485 | $ | (2,937 | ) | 289 | $ | 106,933 | $ | (4,538 | ) |
Fair Value | Cost or Amortized Cost | Fair Value | Cost or Amortized Cost | |||||||||||||||||||||||||||||
One year or less | $ | 152,034 | 34.1 | % | $ | 151,687 | 34.4 | % | $ | 74,187 | 17.0 | % | $ | 75,854 | 17.1 | % | ||||||||||||||||
Excess of one year to five years | 222,173 | 49.9 | 220,010 | 49.9 | 242,713 | 55.5 | 244,033 | 55.1 | ||||||||||||||||||||||||
Excess of five years to ten years | 21,492 | 4.8 | 21,122 | 4.8 | 36,452 | 8.3 | 37,269 | 8.4 | ||||||||||||||||||||||||
Excess of ten years | 3,137 | 0.7 | 3,044 | 0.7 | 3,218 | 0.8 | 2,901 | 0.7 | ||||||||||||||||||||||||
Total maturities | 398,836 | 89.5 | 395,863 | 89.8 | 356,570 | 81.6 | 360,057 | 81.3 | ||||||||||||||||||||||||
Asset-backed securities | 46,833 | 10.5 | 44,696 | 10.2 | 80,614 | 18.4 | 82,521 | 18.7 | ||||||||||||||||||||||||
$ | 445,669 | 100.0 | % | $ | 440,559 | 100.0 | % | $ | 437,184 | 100.0 | % | $ | 442,578 | 100.0 | % |
2012 | 2011 | 2010 | |||||||||||
Fixed maturities | $ | 10,052 | $ | 11,016 | $ | 11,838 | |||||||
Equity securities | 2,121 | 1,738 | 1,433 | ||||||||||
Money market funds | 38 | 36 | 39 | ||||||||||
Short-term and other | 5 | 24 | 32 | ||||||||||
12,216 | 12,814 | 13,342 | |||||||||||
Investment expenses | (2,286 | ) | (2,085 | ) | (2,007 | ) | |||||||
Net investment income | $ | 9,930 | $ | 10,729 | $ | 11,335 |
2015 | 2014 | 2013 | ||||||||||
Interest on fixed maturities | $ | 11,663 | $ | 8,806 | $ | 9,023 | ||||||
Dividends on equity securities | 3,445 | 2,693 | 2,166 | |||||||||
Money market funds, Short-term and other | 32 | 37 | 49 | |||||||||
15,140 | 11,536 | 11,238 | ||||||||||
Investment expenses | (2,642 | ) | (2,481 | ) | (2,468 | ) | ||||||
Net investment income | $ | 12,498 | $ | 9,055 | $ | 8,770 |
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||
Gross gains | $ | 3,860 | $ | 6,443 | $ | 4,005 | $ | 6,633 | $ | 6,480 | $ | 7,235 | ||||||||||||
Gross losses | (3,961 | ) | (6,805 | ) | (1,215 | ) | (13,634 | ) | (4,596 | ) | (4,371 | ) | ||||||||||||
Net gains (losses) | (101 | ) | (362 | ) | 2,790 | (7,001 | ) | 1,884 | 2,864 | |||||||||||||||
Equity securities: | ||||||||||||||||||||||||
Gross gains | 3,191 | 7,409 | 7,447 | 21,070 | 7,467 | 15,374 | ||||||||||||||||||
Gross losses | (1,131 | ) | (2,960 | ) | (1,958 | ) | (13,643 | ) | (1,529 | ) | (2,718 | ) | ||||||||||||
Net gains | 2,060 | 4,449 | 5,489 | 7,427 | 5,938 | 12,656 | ||||||||||||||||||
Limited partnerships - net gain (loss) | 7,052 | (21,890 | ) | 8,206 | (1,687 | ) | 7,108 | 7,995 | ||||||||||||||||
Total net gains (losses) | $ | 9,011 | $ | (17,803 | ) | $ | 16,485 | $ | (1,261 | ) | $ | 14,930 | $ | 23,515 |
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Cumulative charges to income at beginning of year | $ | 8,178 | $ | 7,604 | $ | 9,235 | $ | 7,168 | $ | 6,770 | $ | 7,773 | ||||||||||||
Writedowns based on objective and subjective criteria | 888 | 1,906 | 42 | 7,700 | 689 | 742 | ||||||||||||||||||
Recovery of prior writedowns upon sale or disposal | (1,293 | ) | (1,332 | ) | (1,673 | ) | (4,355 | ) | (291 | ) | (1,745 | ) | ||||||||||||
Net pre-tax realized gain (loss) | 405 | (574 | ) | 1,631 | (3,345 | ) | (398 | ) | 1,003 | |||||||||||||||
Cumulative charges to income at end of year | $ | 7,773 | $ | 8,178 | $ | 7,604 | $ | 10,513 | $ | 7,168 | $ | 6,770 | ||||||||||||
Addition (reduction) to earnings per share from net | ||||||||||||||||||||||||
after-tax realized gain (loss) | $ | .02 | $ | (.03 | ) | $ | .07 | |||||||||||||||||
after-tax OTTI gain (loss) | $ | (.14 | ) | $ | (.02 | ) | $ | .04 | ||||||||||||||||
Unrealized gain on investments previously | ||||||||||||||||||||||||
written down at end of the year - see note below | $ | 8,158 | $ | 6,782 | $ | 9,535 | $ | 14,710 | $ | 17,127 | $ | 13,129 |
2015 | 2014 | 2013 | ||||||||||
Total assets | $ | 511,118 | $ | 565,500 | $ | 493,028 | ||||||
Total partners' capital | 470,783 | 542,700 | 444,337 | |||||||||
Net increase (decrease) in partners' capital resulting from operations | (19,603 | ) | 125,700 | (64,550 | ) |
2012 | 2011 | 2010 | ||||||||||
Total assets | $ | 641,071 | $ | 633,165 | $ | 963,207 | ||||||
Total partners' capital | 559,745 | 579,568 | 895,207 | |||||||||
Net increase (decrease) in partners' capital resulting from operations | 60,734 | (266,314 | ) | 98,279 |
2015 | 2014 | 2013 | |||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
Reserves at the beginning of the year | $ 290,092 | $ 218,629 | $ 203,253 | $ | 295,583 | $ | 288,088 | $ | 289,236 | ||||||||||||||
Provision for losses and loss expenses: | |||||||||||||||||||||||
Claims occurring during the current year | Claims occurring during the current year | 147,963 | 225,251 | 154,775 | 165,812 | 169,950 | 156,264 | ||||||||||||||||
Claims occurring during prior years | (9,875) | (9,696) | (8,823) | (10,062 | ) | (10,354 | ) | (5,563 | ) | ||||||||||||||
Total incurred | 138,088 | 215,555 | 145,952 | 155,750 | 159,596 | 150,701 | |||||||||||||||||
Loss and loss expense payments: | |||||||||||||||||||||||
Claims occurring during the current year | Claims occurring during the current year | 44,942 | 71,699 | 56,394 | 56,710 | 59,826 | 47,908 | ||||||||||||||||
Claims occurring during prior years | 94,002 | 72,393 | 74,182 | 92,870 | 92,275 | 103,941 | |||||||||||||||||
Total paid | 138,944 | 144,092 | 130,576 | 149,580 | 152,101 | 151,849 | |||||||||||||||||
Reserves at the end of the year | 289,236 | 290,092 | 218,629 | 301,753 | 295,583 | 288,088 | |||||||||||||||||
Reinsurance recoverable on unpaid losses at the end of the year | 166,218 | 131,464 | 125,891 | ||||||||||||||||||||
Reinsurance recoverable on unpaid losses | |||||||||||||||||||||||
at the end of the year | 211,843 | 210,519 | 186,382 | ||||||||||||||||||||
Reserves, gross of reinsurance | |||||||||||||||||||||||
recoverable, at the end of the year | $ 455,454 | $ 421,556 | $ 344,520 | $ | 513,596 | $ | 506,102 | $ | 474,470 | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||
Property and casualty insurance | $ | (7,111 | ) | $ | (7,417 | ) | $ | (6,567 | ) | |||
Reinsurance | (2,764 | ) | (2,279 | ) | (2,256 | ) | ||||||
Totals | $ | (9,875 | ) | $ | (9,696 | ) | $ | (8,823 | ) | |||
The major components of the developments shown above are as follows for the years ended December 31: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Property and casualty insurance | $ | (10,289 | ) | $ | (5,423 | ) | $ | (1,725 | ) | |||
Reinsurance | 227 | (4,931 | ) | (3,838 | ) | |||||||
Totals | $ | (10,062 | ) | $ | (10,354 | ) | $ | (5,563 | ) | |||
Premiums Written | Premiums Earned | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||
Direct | $ | 366,668 | $ | 343,200 | $ | 314,784 | $ | 370,499 | $ | 342,656 | $ | 313,842 | ||||||||||||
Ceded on direct | (128,338 | ) | (118,942 | ) | (112,967 | ) | (128,135 | ) | (117,973 | ) | (111,057 | ) | ||||||||||||
Net direct | 238,330 | 224,258 | 201,817 | 242,364 | 224,683 | 202,785 | ||||||||||||||||||
Assumed | 16,885 | 39,188 | 54,692 | 21,533 | 38,219 | 52,783 | ||||||||||||||||||
Ceded on assumed | (562 | ) | (1,275 | ) | (2,825 | ) | (562 | ) | (1,275 | ) | (2,825 | ) | ||||||||||||
Net assumed | 16,323 | 37,913 | 51,867 | 20,971 | 36,944 | 49,958 | ||||||||||||||||||
Net | $ | 254,653 | $ | 262,171 | $ | 253,684 | $ | 263,335 | $ | 261,627 | $ | 252,743 |
Premiums Written | Premiums Earned | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||||
Direct | $ | 284,200 | $ | 274,101 | $ | 249,699 | $ | 287,982 | $ | 270,002 | $ | 245,912 | ||||||||||||
Ceded on direct | (105,292 | ) | (84,130 | ) | (75,907 | ) | (101,396 | ) | (83,580 | ) | (71,869 | ) | ||||||||||||
Net direct | 178,908 | 189,971 | 173,792 | 186,586 | 186,422 | 174,043 | ||||||||||||||||||
Assumed | 57,086 | 60,425 | 46,103 | 53,191 | 60,061 | 41,945 | ||||||||||||||||||
Ceded on assumed | (2,316 | ) | (1,913 | ) | (1,250 | ) | (2,316 | ) | (1,913 | ) | (1,250 | ) | ||||||||||||
Net assumed | 54,770 | 58,512 | 44,853 | 50,875 | 58,148 | 40,695 | ||||||||||||||||||
Net | $ | 233,678 | $ | 248,483 | $ | 218,645 | $ | 237,461 | $ | 244,570 | $ | 214,738 |
2015 | 2014 | |||||||
Case unpaid losses, net of valuation allowance | $ | 120,320 | $ | 143,403 | ||||
Incurred but not reported unpaid losses and loss expenses | 90,578 | 66,325 | ||||||
Paid losses and loss expenses | 2,452 | 6,910 | ||||||
Unearned premiums | 2,538 | 3,583 | ||||||
$ | 215,888 | $ | 220,221 |
2012 | 2011 | |||||||
Case unpaid losses, net of valuation allowance | $ | 105,940 | $ | 72,914 | ||||
Incurred but not reported unpaid losses and loss expenses | 59,421 | 56,262 | ||||||
Paid losses and loss expenses | 2,506 | 3,043 | ||||||
Unearned premiums | 7,324 | 6,185 | ||||||
$ | 175,191 | $ | 138,404 |
2012 | 2011 | 2015 | 2014 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Unrealized gain on fixed income and equity security investments | $ | 19,098 | $ | 14,319 | $ | 20,959 | $ | 27,914 | ||||||||
Deferred acquisition costs | 2,782 | 3,576 | 877 | 1,341 | ||||||||||||
Salvage and subrogation | 2,555 | 2,275 | ||||||||||||||
Loss and loss expense reserves | 2,305 | 2,373 | ||||||||||||||
Limited partnership investments | 1,554 | - | 1,771 | 4,636 | ||||||||||||
Accelerated depreciation | 897 | 601 | ||||||||||||||
Other | 1,562 | 898 | 1,024 | 628 | ||||||||||||
Total deferred tax liabilities | 27,551 | 21,068 | 27,833 | 37,493 | ||||||||||||
Deferred tax assets: | ||||||||||||||||
Loss and loss expense reserves | 11,384 | 18,377 | 9,349 | 10,973 | ||||||||||||
Unearned premiums discount | 2,097 | 2,361 | 1,593 | 2,201 | ||||||||||||
Other-than-temporary investment declines | 2,733 | 2,902 | 3,437 | 2,049 | ||||||||||||
Deferred compensation | 734 | 845 | 1,699 | 1,565 | ||||||||||||
Deferred ceding commission | 1,700 | 1,974 | 371 | 549 | ||||||||||||
Limited partnership investments | - | 1,459 | ||||||||||||||
Other | 325 | 269 | 186 | 183 | ||||||||||||
Total deferred tax assets | 18,973 | 28,187 | 16,635 | 17,520 | ||||||||||||
Net deferred tax assets (liabilities) | $ | (8,578 | ) | $ | 7,119 | |||||||||||
Net deferred tax liabilities | $ | (11,198 | ) | $ | (19,973 | ) |
2012 | 2011 | 2010 | ||||||||||||||
Statutory federal income rate applied to pretax income (loss) $ 16,312 | $ | (15,851) | $ | 12,185 | ||||||||||||
Tax effect of (deduction): | ||||||||||||||||
Tax-exempt investment income | (933 | ) | (1,145 | ) | (1,296 | ) | ||||||||||
Net reduction of tax positions | (693 | ) | (174 | ) | (826 | ) | ||||||||||
Other | 1 | 56 | (265 | ) | ||||||||||||
Federal income tax expense (benefit) | $ | 14,687 | $ | (17,114 | ) | $ | 9,798 |
Federal income tax expense (benefit) consists of the following: | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Taxes (credits) on pre-tax income (loss): | ||||||||||||
Current | $ | 10,819 | $ | (8,205 | ) | $ | 9,752 | |||||
Deferred | 3,868 | (8,909 | ) | 46 | ||||||||
$ | 14,687 | $ | (17,114 | ) | $ | 9,798 |
2015 | 2014 | 2013 | ||||||||||
Statutory federal income rate applied to pretax income | $ | 11,883 | $ | 15,539 | $ | 19,218 | ||||||
Tax effect of (deduction): | ||||||||||||
Tax-exempt investment income | (919 | ) | (924 | ) | (811 | ) | ||||||
Other | (295 | ) | 66 | (85 | ) | |||||||
Federal income tax expense | $ | 10,669 | $ | 14,681 | $ | 18,322 |
Federal income tax expense consists of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Taxes (benefit) on pre-tax income: | ||||||||||||
Current | $ | 12,488 | $ | 13,041 | $ | 17,383 | ||||||
Deferred | (1,819 | ) | 1,640 | 939 | ||||||||
$ | 10,669 | $ | 14,681 | $ | 18,322 |
The components of the provision for deferred federal income taxes (credits) are as follows: | |||||||||||||||||||||||||
The components of the provision for deferred federal income taxes are as follows: | The components of the provision for deferred federal income taxes are as follows: | ||||||||||||||||||||||||
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Limited partnerships | $ | 3,013 | $ | (7,196 | ) | $ | 485 | $ | (2,865 | ) | $ | 2,025 | $ | 1,058 | |||||||||||
Discounts of loss and loss expense reserves | (57 | ) | (2,546 | ) | (107 | ) | 1,526 | 113 | 313 | ||||||||||||||||
Unearned premium discount | 265 | (30 | ) | (517 | ) | 608 | (38 | ) | (65 | ) | |||||||||||||||
Deferred compensation | 112 | 499 | (735 | ) | (127 | ) | (685 | ) | (146 | ) | |||||||||||||||
Other-than-temporary investment declines | 169 | (240 | ) | 571 | (1,416 | ) | (19 | ) | 680 | ||||||||||||||||
Deferred acquisitions costs and ceding commission | (520 | ) | (87 | ) | (27 | ) | (287 | ) | (20 | ) | (271 | ) | |||||||||||||
Other | 886 | 691 | 376 | 742 | 264 | (630 | ) | ||||||||||||||||||
Provision for deferred federal income tax (credits) | $ | 3,868 | $ | (8,909 | ) | $ | 46 | ||||||||||||||||||
Provision for deferred federal income tax | $ | (1,819 | ) | $ | 1,640 | $ | 939 |
2012 | 2011 | |||||||
Balance at January 1 | $ | 6,000 | $ | 6,000 | ||||
Reductions for tax positions of the current year | - | - | ||||||
Reductions for tax positions of prior years | (6,000 | ) | - | |||||
Balance at December 31 | $ | - | $ | 6,000 |
Note F - Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||
Changes in common stock outstanding and additional paid-in capital are as follows: | Changes in common stock outstanding and additional paid-in capital are as follows: | Changes in common stock outstanding and additional paid-in capital are as follows: | ||||||||||||||||||||||||||||||||||||||||||
Additional | Additional | |||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Paid-in | Class A | Class B | Paid-in | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Shares | Amount | Shares | Amount | Capital | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2010 | 2,623,109 | $ | 112 | 12,109,878 | $ | 517 | $ | 46,337 | ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | 2,623,109 | $ | 112 | 12,290,035 | $ | 524 | $ | 50,275 | ||||||||||||||||||||||||||||||||||||
Restricted stock grants | - | - | 77,131 | 3 | 1,537 | - | - | 14,156 | 1 | 319 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | 2,623,109 | 112 | 12,187,009 | 520 | 47,874 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 2,623,109 | 112 | 12,304,191 | 525 | 50,594 | |||||||||||||||||||||||||||||||||||||||
Restricted stock grants | - | - | 38,339 | 2 | 877 | - | - | 52,198 | 2 | 1,260 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 2,623,109 | 112 | 12,225,348 | 522 | 48,751 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | 2,623,109 | 112 | 12,356,389 | 527 | 51,854 | |||||||||||||||||||||||||||||||||||||||
Restricted stock grants | - | - | 64,687 | 2 | 1,524 | - | - | 46,552 | 2 | 1,092 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 2,623,109 | $ | 112 | 12,290,035 | $ | 524 | $ | 50,275 | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | 2,623,109 | $ | 112 | 12,402,941 | $ | 529 | $ | 52,946 |
Note G - Other Operating Expenses | |||||||||||||
Details of other operating expenses for the years ended December 31: | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
Amortization of gross deferred policy acquisition costs | $ | 41,957 | $ | 40,712 | $ | 34,048 | |||||||
Other underwriting expenses | 27,242 | 25,290 | 23,894 | ||||||||||
Expense allowances from reinsurers | (15,185 | ) | (11,503 | ) | (10,081 | ) | |||||||
Total underwriting expenses | 54,014 | 54,499 | 47,861 | ||||||||||
Operating expenses of non-insurance companies | 23,416 | 18,829 | 20,843 | ||||||||||
Total other operating expenses | $ | 77,430 | $ | 73,328 | $ | 68,704 |
Note G - Other Operating Expenses | ||||||||||||
Details of other operating expenses for the years ended December 31: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Amortization of gross deferred policy acquisition costs | $ | 50,270 | $ | 48,872 | $ | 47,414 | ||||||
Other underwriting expenses | 42,638 | 37,830 | 35,281 | |||||||||
Expense allowances from reinsurers | (28,956 | ) | (23,797 | ) | (20,822 | ) | ||||||
Total underwriting expenses | 63,952 | 62,905 | 61,873 | |||||||||
Operating expenses of non-insurance companies | 26,621 | 25,143 | 23,488 | |||||||||
Total other operating expenses | $ | 90,573 | $ | 88,048 | $ | 85,361 |
Effective | Number of Shares | Vesting | Value | ||||||||
Date | Issued | Date | Period | Per Share | |||||||
6/11/2009 | 20,900 | 5/5/2010 | 7/1/2009 - 6/30/2010 | $ | 21.05 | ||||||
5/4/2010 | 17,754 | 5/4/2011 | 7/1/2010 - 6/30/2011 | $ | 24.78 | ||||||
5/10/2011 | 19,558 | 5/10/2012 | 7/1/2011 - 6/30/2012 | $ | 22.50 | ||||||
5/8/2012 | 20,119 | 5/8/2013 | 7/1/2012 - 6/30/2013 | $ | 21.87 |
Effective | Number of Shares | Vesting | Value | |||||||
Date | Issued | Date | Period | Per Share | ||||||
5/7/2013 | 18,106 | 5/7/2014 | 7/1/2013 - 6/30/2014 | $ | 24.30 | |||||
5/8/2014 | 17,237 | 5/8/2015 | 7/1/2014 - 6/30/2015 | $ | 25.53 | |||||
5/12/2015 | 21,252 | 5/12/2016 | 7/1/2015 - 6/30/2016 | $ | 22.59 |
2012 | 2011 | 2010 | |||||||||||
Direct and assumed premium written: | |||||||||||||
Property and casualty insurance | $ | 284,200 | $ | 274,101 | $ | 249,699 | |||||||
Reinsurance | 57,086 | 60,425 | 46,103 | ||||||||||
Totals | $ | 341,286 | $ | 334,526 | $ | 295,802 | |||||||
Net premium earned: | |||||||||||||
Property and casualty insurance | $ | 186,586 | $ | 186,422 | $ | 174,043 | |||||||
Reinsurance | 50,875 | 58,148 | 40,695 | ||||||||||
Totals | $ | 237,461 | $ | 244,570 | $ | 214,738 | |||||||
Underwriting gain (loss): | |||||||||||||
Property and casualty insurance | $ | 23,491 | $ | 19,646 | $ | 26,308 | |||||||
Reinsurance | 20,567 | (45,113 | ) | (6,725 | ) | ||||||||
Totals | $ | 44,058 | $ | (25,467 | ) | $ | 19,583 |
2015 | 2014 | 2013 | ||||||||||
Direct and assumed premium written: | ||||||||||||
Property and casualty insurance | $ | 366,668 | $ | 343,200 | $ | 314,784 | ||||||
Reinsurance | 16,885 | 39,188 | 54,692 | |||||||||
Totals | $ | 383,553 | $ | 382,388 | $ | 369,476 | ||||||
Net premium earned: | ||||||||||||
Property and casualty insurance | $ | 242,364 | $ | 224,683 | $ | 202,785 | ||||||
Reinsurance | 20,971 | 36,944 | 49,958 | |||||||||
Totals | $ | 263,335 | $ | 261,627 | $ | 252,743 | ||||||
Underwriting gain: | ||||||||||||
Property and casualty insurance | $ | 40,431 | $ | 32,663 | $ | 25,558 | ||||||
Reinsurance | (1,504 | ) | 2,147 | 12,278 | ||||||||
Totals | $ | 38,927 | $ | 34,810 | $ | 37,836 |
2015 | 2014 | 2013 | ||||||||||
Profit: | ||||||||||||
Underwriting gain | $ | 38,927 | $ | 34,810 | $ | 37,836 | ||||||
Net investment income | 12,498 | 9,055 | 8,770 | |||||||||
Net realized gains (losses) on investments | (1,261 | ) | 14,930 | 23,515 | ||||||||
Corporate expenses | (16,212 | ) | (14,397 | ) | (15,211 | ) | ||||||
Income before federal income taxes | $ | 33,952 | $ | 44,398 | $ | 54,910 |
2012 | 2011 | 2010 | |||||||||||
Profit: | |||||||||||||
Underwriting gain (loss) | $ | 44,058 | $ | (25,467 | ) | $ | 19,583 | ||||||
Net investment income | 9,930 | 10,729 | 11,335 | ||||||||||
Net realized gains (losses) on investments | 9,011 | (17,803 | ) | 16,485 | |||||||||
Corporate expenses | (16,393 | ) | (12,748 | ) | (12,590 | ) | |||||||
Income (loss) before federal income taxes | $ | 46,606 | $ | (45,289 | ) | $ | 34,813 |
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Average share outstanding for basic earnings per share | 14,838,767 | 14,818,354 | 14,782,624 | 15,010,454 | 14,963,959 | 14,906,416 | ||||||||||||||||||
Dilutive effect of share equivalents | 29,482 | - | 16,078 | 11,308 | 11,935 | 17,345 | ||||||||||||||||||
Average shares outstanding for diluted earnings per share | 14,868,249 | 14,818,354 | 14,798,702 | 15,021,762 | 14,975,894 | 14,923,761 |
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U.S. government obligations | $ | 70,742 | $ | 70,742 | $ | - | $ | - | ||||||||
Residential mortgage-backed securities | 25,040 | - | 25,040 | - | ||||||||||||
Commercial mortgage-backed securities | 11,828 | - | 11,828 | - | ||||||||||||
State and municipal obligations | 194,865 | - | 194,865 | - | ||||||||||||
Corporate securities | 118,945 | - | 107,263 | 11,682 | ||||||||||||
Options embedded in convertible securities | 1,651 | - | 1,651 | - | ||||||||||||
Foreign government obligations | 22,598 | - | 22,598 | - | ||||||||||||
Total fixed maturities | 445,669 | 70,742 | 363,245 | 11,682 | ||||||||||||
Equity securities | 107,582 | 107,582 | - | - | ||||||||||||
Short term | 4,201 | 4,201 | - | - | ||||||||||||
Cash equivalents | 64,450 | - | 64,450 | - | ||||||||||||
$ | 621,902 | $ | 182,525 | $ | 427,695 | $ | 11,682 |
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government obligations | $ | 103,245 | $ | - | $ | 103,245 | $ | - | ||||||||
Residential mortgage-backed securities | 4,776 | - | 4,776 | - | ||||||||||||
Commercial mortgage-backed securities | 30,595 | - | 29,226 | 1,369 | ||||||||||||
State and municipal obligations | 110,578 | - | 110,578 | - | ||||||||||||
Corporate securities | 161,630 | - | 146,488 | 15,142 | ||||||||||||
Options embedded in convertible securities | 2,395 | - | 2,395 | - | ||||||||||||
Foreign government obligations | 23,965 | - | 23,683 | 282 | ||||||||||||
Total fixed maturities | 437,184 | - | 420,391 | 16,793 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial institutions | 21,694 | 21,694 | - | - | ||||||||||||
Industrial & miscellaneous | 123,804 | 123,804 | - | - | ||||||||||||
Total equity securities | 145,498 | 145,498 | - | - | ||||||||||||
Short term | 2,220 | 2,220 | - | - | ||||||||||||
Cash equivalents | 69,517 | - | 69,517 | - | ||||||||||||
Total | $ | 654,419 | $ | 147,718 | $ | 489,908 | $ | 16,793 |
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | - | $ | 101,094 | $ | - | ||||||||
Residential mortgage-backed securities | 6,066 | - | 6,066 | - | ||||||||||||
Commercial mortgage-backed securities | 36,440 | - | 36,440 | - | ||||||||||||
State and municipal obligations | 113,777 | - | 113,777 | - | ||||||||||||
Corporate securities | 164,068 | - | 151,860 | 12,208 | ||||||||||||
Options embedded in convertible securities | 2,898 | - | 2,898 | - | ||||||||||||
Foreign government obligations | 27,466 | - | 27,466 | - | ||||||||||||
Total fixed maturities | 451,809 | - | 439,601 | 12,208 | ||||||||||||
Equity securities: | ||||||||||||||||
Financial institutions | 25,343 | 25,343 | - | - | ||||||||||||
Industrial & miscellaneous | 136,764 | 136,764 | - | - | ||||||||||||
Total equity securities | 162,107 | 162,107 | - | - | ||||||||||||
Short term | 2,966 | 2,966 | - | - | ||||||||||||
Cash equivalents | 59,309 | - | 59,309 | - | ||||||||||||
Total | $ | 676,191 | $ | 165,073 | $ | 498,910 | $ | 12,208 |
Description | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
U.S. government obligations | $ | 73,137 | $ | 73,137 | $ | - | $ | - | ||||||||
Government sponsored entities | 349 | - | 349 | - | ||||||||||||
Residential mortgage-backed securities | 21,872 | - | 21,872 | - | ||||||||||||
Commercial mortgage-backed securities | 11,300 | - | 11,300 | - | ||||||||||||
State and municipal obligations | 190,035 | - | 190,035 | - | ||||||||||||
Corporate securities | 90,141 | - | 73,091 | 17,050 | ||||||||||||
Options embedded in convertible securities | 1,505 | - | 1,505 | - | ||||||||||||
Foreign government obligations | 21,121 | - | 21,121 | - | ||||||||||||
Total fixed maturities | 409,460 | 73,137 | 319,273 | 17,050 | ||||||||||||
Equity securities | 88,085 | 88,085 | - | - | ||||||||||||
Short term | 3,675 | 2,982 | 693 | - | ||||||||||||
Cash equivalents | 81,756 | - | 81,756 | - | ||||||||||||
$ | 582,976 | $ | 164,204 | $ | 401,722 | $ | 17,050 |
Level Input: | Input Definition: | |
Level 1 | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level 3 | Unobservable inputs that reflect |
2012 | 2011 | 2015 | 2014 | |||||||||||||
Beginning of period balance | $ | 17,050 | $ | 17,242 | $ | 12,208 | $ | - | ||||||||
Total gains or losses (realized or unrealized) | ||||||||||||||||
Total gains or losses (realized) | ||||||||||||||||
included in income | 1,653 | 387 | (104 | ) | - | |||||||||||
Purchases | 400 | 6,522 | 2,284 | - | ||||||||||||
Settlements | (7,421 | ) | (7,101 | ) | (8,068 | ) | - | |||||||||
Transfers into Level 3 | 11,586 | 12,208 | ||||||||||||||
Transfers out of Level 3 | (1,113 | ) | - | |||||||||||||
End of period balance | $ | 11,682 | $ | 17,050 | $ | 16,793 | $ | 12,208 |
Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level II | Level III | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Limited partnerships | $ | 59,954 | $ | - | $ | - | $ | 59,954 | $ | 59,954 | ||||||||||
Liabilities: | ||||||||||||||||||||
Short-term borrowings | 10,000 | - | 10,000 | - | 10,000 |
2015: | Carrying | Fair Value | ||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Assets: | ||||||||||||||||||||
Limited partnerships | $ | 75,458 | $ | - | $ | - | $ | 75,458 | $ | 75,458 | ||||||||||
Liabilities: | ||||||||||||||||||||
Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 | |||||||||||||||
2014: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Limited partnerships | $ | 81,230 | $ | - | $ | - | $ | 81,230 | $ | 81,230 | ||||||||||
Liabilities: | ||||||||||||||||||||
Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 |
Carrying | Fair | |||||||
Value | Value | |||||||
Assets: | ||||||||
Limited partnerships | $ | 54,705 | $ | 54,705 | ||||
Liabilities: | ||||||||
Short-term borrowings | 10,000 | 10,000 |
Note O - Quarterly Results of Operations (Unaudited) | |||||||||||||||||||||||||||||||||
Quarterly results of operations are as follows: | |||||||||||||||||||||||||||||||||
Results by Quarter | |||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Net premiums earned | $ | 66,446 | $ | 65,449 | $ | 65,445 | $ | 65,995 | $ | 63,842 | $ | 62,905 | $ | 65,947 | $ | 68,933 | |||||||||||||||||
Net investment income | 2,815 | 2,898 | 3,014 | 3,771 | 2,294 | 2,090 | 2,073 | 2,599 | |||||||||||||||||||||||||
Net gains (losses) on investments | 3,743 | (1,166 | ) | (2,086 | ) | (1,753 | ) | 4,070 | 8,089 | 658 | 2,113 | ||||||||||||||||||||||
Losses and loss expenses incurred | 41,646 | 37,031 | 35,212 | 41,860 | 39,289 | 40,282 | 38,693 | 41,332 | |||||||||||||||||||||||||
Net income | 6,243 | 5,718 | 7,780 | 3,541 | 6,361 | 9,340 | 5,770 | 8,246 | |||||||||||||||||||||||||
Net income per share - diluted | $ | .42 | $ | .38 | $ | .52 | $ | .24 | $ | .42 | $ | .62 | $ | .39 | $ | .55 |
Quarterly results of operations are as follows: | |||||||||||||||||||||||||||||||||
Results by Quarter | |||||||||||||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Net premiums earned | $ | 61,551 | $ | 59,655 | $ | 54,853 | $ | 61,402 | $ | 57,601 | $ | 62,344 | $ | 60,429 | $ | 64,196 | |||||||||||||||||
Net investment income | 2,422 | 2,431 | 2,343 | 2,734 | 2,653 | 2,644 | 2,779 | 2,652 | |||||||||||||||||||||||||
Net gains (losses) on investments | 5,381 | (5,453 | ) | 8,781 | 302 | (1,469 | ) | (1,963 | ) | (17,460 | ) | 3,088 | |||||||||||||||||||||
Losses and loss expenses incurred | 34,904 | 33,739 | 30,477 | 38,970 | 65,673 | 55,166 | 48,637 | 46,079 | |||||||||||||||||||||||||
Net income (loss) | 11,506 | 4,050 | 11,687 | 4,676 | (15,198 | ) | (5,504 | ) | (12,971 | ) | 5,498 | ||||||||||||||||||||||
Net income (loss) per share - diluted | $ | .78 | $ | .27 | $ | .78 | $ | .31 | $ | (1.02 | ) | $ | (.38 | ) | $ | (.87 | ) | $ | .37 |
2013 | $ | 998 | ||
2014 | 49 | |||
2015 | 15 | |||
2016 | - | |||
2017 | - | |||
Thereafter | - | |||
Total minimum payments required | $ | 1,062 |
2016 | $ | 148 | ||
2017 | 116 | |||
2018 & thereafter | - | |||
Total minimum payments required | $ | 264 |
2015 | 2014 | |||||||
Investments: | ||||||||
Total unrealized gain before federal income taxes | $ | 59,883 | $ | 79,753 | ||||
Deferred tax liability | (20,959 | ) | (27,913 | ) | ||||
Net unrealized gains on investments | 38,924 | 51,840 | ||||||
Foreign exchange adjustment: | ||||||||
Total unrealized gains (losses) | (1,640 | ) | 600 | |||||
Deferred tax benefit (liability) | 574 | (210 | ) | |||||
Net unrealized gains (losses) on foreign exchange adjustment | (1,066 | ) | 390 | |||||
Accumulated other comprehensive income | $ | 37,858 | $ | 52,230 |
2012 | 2011 | |||||||
Investments: | ||||||||
Total unrealized gain before federal income taxes | $ | 54,565 | $ | 40,911 | ||||
Deferred tax liability | (19,098 | ) | (14,319 | ) | ||||
Net unrealized gains on investments | 35,467 | 26,592 | ||||||
Foreign exchange adjustment: | ||||||||
Gross unrealized gains | 3,039 | 2,706 | ||||||
Deferred tax liability | (1,063 | ) | (947 | ) | ||||
Net unrealized gains on foreign exchange adjustment | 1,976 | 1,759 | ||||||
Accumulated other comprehensive income | $ | 37,443 | $ | 28,351 |
2012 | 2011 | 2010 | ||||||||||
Investments: | ||||||||||||
Pre-tax holding gains (losses) on debt and equity | ||||||||||||
securities arising during period | $ | 15,612 | $ | (7,146 | ) | $ | 11,369 | |||||
Applicable federal income taxes (credits) | 5,464 | (2,501 | ) | 3,979 | ||||||||
10,148 | (4,645 | ) | 7,390 | |||||||||
Pre-tax gains (losses) on debt and equity securities | ||||||||||||
included in net income (loss) during period | 1,959 | 4,088 | 8,280 | |||||||||
Applicable federal income taxes (credits) | 686 | 1,431 | 2,898 | |||||||||
1,273 | 2,657 | 5,382 | ||||||||||
Change in unrealized gains (losses) on investments | $ | 8,875 | $ | (7,302 | ) | $ | 2,008 |
2015 | 2014 | 2013 | ||||||||||
Investments: | ||||||||||||
Pre-tax holding gains (losses) on debt and equity | ||||||||||||
securities arising during period | $ | (19,445 | ) | $ | 12,055 | $ | 36,477 | |||||
Less: applicable federal income taxes | (6,806 | ) | 4,220 | 12,766 | ||||||||
(12,639 | ) | 7,835 | 23,711 | |||||||||
Pre-tax gains on debt and equity securities | ||||||||||||
included in net income during period | 426 | 7,823 | 15,520 | |||||||||
Less: applicable federal income taxes | 149 | 2,739 | 5,431 | |||||||||
277 | 5,084 | 10,089 | ||||||||||
Change in unrealized gains on investments | $ | (12,916 | ) | $ | 2,751 | $ | 13,622 |
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Beginning accumulated other comprehensive income | $ | 28,351 | $ | 35,883 | $ | 33,434 | $ | 52,230 | $ | 50,490 | $ | 37,443 | ||||||||||||
Change in foreign exchange adjustment | 217 | (230 | ) | 441 | (1,456 | ) | (1,011 | ) | (575 | ) | ||||||||||||||
Change in unrealized net gains (losses) on investments | 8,875 | (7,302 | ) | 2,008 | ||||||||||||||||||||
Change in unrealized net gains on investments | (12,916 | ) | 2,751 | 13,622 | ||||||||||||||||||||
Ending accumulated other comprehensive income | $ | 37,443 | $ | 28,351 | $ | 35,883 | $ | 37,858 | $ | 52,230 | $ | 50,490 | ||||||||||||
2012 | 2011 | 2010 | 2015 | 2014 | 2013 | |||||||||||||||||||
Beginning retained earnings | $ | 241,325 | $ | 284,346 | $ | 292,543 | $ | 294,773 | $ | 280,003 | $ | 258,358 | ||||||||||||
Net income (loss) | 31,919 | (28,175 | ) | 25,015 | ||||||||||||||||||||
Net income | 23,283 | 29,717 | 36,588 | |||||||||||||||||||||
Dividends | (14,886 | ) | (14,846 | ) | (33,212 | ) | (15,003 | ) | (14,947 | ) | (14,943 | ) | ||||||||||||
Ending retained earnings | $ | 258,358 | $ | 241,325 | $ | 284,346 | $ | 303,053 | $ | 294,773 | $ | 280,003 |
Name | Age | Title | Served in Such Capacity Since | ||
Joseph J. DeVito | CEO, President and COO | ||||
Steven A. Shapiro | 51 | Executive Chairman | 2015 (2) | ||
Gary W. Miller | 75 | Deputy Chairman | 2015 (3) | ||
G. Patrick Corydon | Executive Vice President and CFO | ||||
Executive Vice President | |||||
* The information to be provided under Items 11, 12, 13 and 14 is omitted from this Report because the Registrant will file with the Commission a definitive proxy statement pursuant to Regulation 14A involving the election of directors not later than 120 days after the close of its fiscal year. The information required by these items of this Report which will appear in the definitive proxy statement is incorporated by reference herein. |
(a) | 1. List of Financial Statements--The following consolidated financial statements of the registrant and its subsidiaries (including the Report of Independent Registered Public Accounting Firm) are submitted in Item 8 of this report. |
Consolidated Balance Sheets - December 31, |
Consolidated Statements of Operations - Years ended December 31, Consolidated Statements of Comprehensive Income – Years ended December 31, 2015, 2014 and 2013 |
Consolidated Statements of |
Consolidated Statements of Cash Flows - Years ended December 31, |
Notes to Consolidated Financial Statements |
2. | List of Financial Statement Schedules--The following consolidated financial statement schedules of Baldwin & Lyons, Inc. and subsidiaries are included in Item 15(d): |
Pursuant to Article 7: |
Schedule I -- Summary of Investments--Other than Investments in Related Parties |
Schedule II -- Condensed Financial Information of the Registrant |
Schedule III -- Supplementary Insurance Information |
Schedule IV -- Reinsurance |
Schedule VI -- Supplemental Information Concerning Property/Casualty Insurance Operations |
Number & Caption from Exhibit Table of Item 601 of Regulation S-K | Exhibit Number and Description |
(3) (Articles of Incorporation & By Laws) | EXHIBIT 3(i) – Articles of Incorporation of Baldwin & Lyons, Inc., as amended (Incorporated as an exhibit by reference to Exhibit 3(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 1986) |
EXHIBIT 3(ii)-- By-Laws of Baldwin & Lyons, Inc., as restated | |
(10) (Material Contracts) | EXHIBIT 10(a)-- 1981 Employee Stock Purchase Plan (Incorporated as an exhibit by reference to Exhibit A to the Company's definitive Proxy Statement for its Annual Meeting held May 5, 1981) |
EXHIBIT | |
Baldwin & Lyons, Inc. Executive Incentive Bonus Plan (Incorporated as an exhibit by reference to the Company's definitive Proxy Statement for its Annual Meeting held May | |
(21) (Subsidiaries of the registrant) | EXHIBIT Subsidiaries of Baldwin & Lyons, Inc. |
(23) (Consents of experts and counsel) | EXHIBIT 23-- Consent of Ernst & Young LLP |
(24) (Powers of Attorney) | EXHIBIT 24-- Powers of Attorney for certain Officers and Directors |
(31) (Certification) | EXHIBIT 31.1-- Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act |
EXHIBIT 31.2-- Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act |
Item 601 of Regulation S-K | Exhibit Number and Description |
(32) (Certification) | EXHIBIT 32-- |
(b) | A report on Form 8-K was filed by the Company in the fourth quarter of |
(c) | Exhibits. The response to this portion of Item 15 is submitted as a separate section of this report. |
(d) | Financial Statement Schedules. The response to this portion of Item 15 is submitted on pages |
SCHEDULE I -- SUMMARY OF INVESTMENTS- | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||
Form 10-K - Year Ended December 31, 2012 | ||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
(Dollars in thousands) | ||||||||||||
Column A | Column B | Column C | Column D | |||||||||
Amount At | ||||||||||||
Which Shown | ||||||||||||
Fair | In The Balance | |||||||||||
Type of Investment | Cost | Value | Sheet (A) | |||||||||
Fixed Maturities: | ||||||||||||
Bonds: | ||||||||||||
U.S. government obligations | 70,720 | 70,742 | 70,742 | |||||||||
Mortgage-backed securities | 34,960 | 36,868 | 36,868 | |||||||||
State and municipal obligations | 194,258 | 194,865 | 194,865 | |||||||||
Foreign government obligations | 22,047 | 22,598 | 22,598 | |||||||||
Corporate securities | 118,574 | 120,596 | 120,596 | |||||||||
Total fixed maturities | 440,559 | 445,669 | 445,669 | |||||||||
Equity Securities: | ||||||||||||
Common Stocks: | ||||||||||||
Industrial, miscellaneous and all other | 58,127 | 107,582 | 107,582 | |||||||||
Total equity securities | 58,127 | 107,582 | 107,582 | |||||||||
Limited partnerships | 59,954 | 59,954 | 59,954 | |||||||||
Short-term: | ||||||||||||
Certificates of deposit | 4,201 | 4,201 | 4,201 | |||||||||
Total short-term and other | 4,201 | 4,201 | 4,201 | |||||||||
Total investments | $ | 562,841 | $ | 617,406 | $ | 617,406 | ||||||
(A) Investments presented above do not include $64,450 of money market funds classified with cash and | ||||||||||||
cash equivalents in the balance sheet. |
SCHEDULE I -- SUMMARY OF INVESTMENTS- | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||
Form 10-K - Year Ended December 31, 2015 | ||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||
(Dollars in thousands) | ||||||||||||
Column A | Column B | Column C | Column D | |||||||||
Amount At | ||||||||||||
Which Shown | ||||||||||||
Fair | In The Balance | |||||||||||
Type of Investment | Cost | Value | Sheet (A) | |||||||||
Fixed Maturities: | ||||||||||||
Bonds: | ||||||||||||
U.S. government obligations | 103,448 | 103,245 | 103,245 | |||||||||
Mortgage-backed securities | 35,645 | 35,371 | 35,371 | |||||||||
State and municipal obligations | 109,932 | 110,578 | 110,578 | |||||||||
Foreign government obligations | 25,416 | 23,965 | 23,965 | |||||||||
Corporate securities | 168,137 | 164,025 | 164,025 | |||||||||
Total fixed maturities | 442,578 | 437,184 | 437,184 | |||||||||
Equity Securities: | ||||||||||||
Common Stocks: | ||||||||||||
Industrial, miscellaneous and all other | 80,221 | 145,498 | 145,498 | |||||||||
Total equity securities | 80,221 | 145,498 | 145,498 | |||||||||
Limited partnerships | 30,449 | 30,449 | 30,449 | |||||||||
Short-term: | ||||||||||||
Certificates of deposit | 2,220 | 2,220 | 2,220 | |||||||||
Total short-term and other | 2,220 | 2,220 | 2,220 | |||||||||
Total investments | $ | 555,468 | $ | 615,351 | $ | 615,351 | ||||||
(A) Investments presented above do not include $69,517 of money market funds classified with cash and | ||||||||||||
cash equivalents in the balance sheet. |
SCHEDULE II | ||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||
Form 10-K | ||||||||
Baldwin & Lyons, Inc. | ||||||||
(Dollars in thousands) | ||||||||
Condensed Balance Sheets | ||||||||
December 31 | ||||||||
2012 | 2011 | |||||||
Assets | ||||||||
Investment in subsidiaries | $ | 362,450 | $ | 334,328 | ||||
Due from affiliates | 2,719 | 5,282 | ||||||
Investments other than subsidiaries: | ||||||||
Fixed maturities | 11,073 | 11,353 | ||||||
Limited partnerships | 255 | 291 | ||||||
11,328 | 11,644 | |||||||
Cash and cash equivalents | 12,134 | 5,690 | ||||||
Accounts receivable | 8,033 | 5,890 | ||||||
Other assets | 7,225 | 7,694 | ||||||
Total assets | $ | 403,889 | $ | 370,528 | ||||
Liabilities and shareholders' equity | ||||||||
Liabilities: | ||||||||
Premiums payable | $ | 29,652 | $ | 26,367 | ||||
Deposits from insureds | 15,489 | 13,682 | ||||||
Notes payable to bank | 10,000 | 10,000 | ||||||
Current payable federal income taxes | - | 368 | ||||||
Other liabilities | 2,036 | 1,050 | ||||||
57,177 | 51,467 | |||||||
Shareholders' equity: | ||||||||
Common stock: | ||||||||
Class A | 112 | 112 | ||||||
Class B | 524 | 522 | ||||||
Additional paid-in capital | 50,275 | 48,751 | ||||||
Unrealized net gains on investments | 35,467 | 26,592 | ||||||
Retained earnings | 260,334 | 243,084 | ||||||
346,712 | 319,061 | |||||||
Total liabilities and shareholders' equity | $ | 403,889 | $ | 370,528 | ||||
See notes to condensed financial statements |
SCHEDULE II | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
Form 10-K | ||||||||||||
Baldwin & Lyons, Inc. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Condensed Statements of Operations | ||||||||||||
Year Ended December 31 | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Revenue: | ||||||||||||
Commissions and service fees | $ | 20,753 | $ | 20,974 | $ | 21,913 | ||||||
Dividends from subsidiaries | 14,000 | 14,000 | 15,000 | |||||||||
Net investment income | 48 | 100 | 135 | |||||||||
Net realized gains (losses) on investments | (49 | ) | 67 | (100 | ) | |||||||
Other | 24 | 98 | 284 | |||||||||
34,776 | 35,239 | 37,232 | ||||||||||
Expenses: | ||||||||||||
Salary and related items | 15,410 | 12,281 | 12,869 | |||||||||
Other | 7,098 | 5,550 | 5,615 | |||||||||
22,508 | 17,831 | 18,484 | ||||||||||
Income before federal income taxes | ||||||||||||
and equity in undistributed | ||||||||||||
income of subsidiaries | 12,268 | 17,408 | 18,748 | |||||||||
Federal income tax (benefit) | (629 | ) | 1,004 | 1,195 | ||||||||
12,897 | 16,404 | 17,553 | ||||||||||
Equity in undistributed income (loss) | ||||||||||||
of subsidiaries | 19,022 | (44,579 | ) | 7,462 | ||||||||
Net income (loss) | $ | 31,919 | $ | (28,175 | ) | $ | 25,015 |
SCHEDULE II | ||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||
Form 10-K | ||||||||
Baldwin & Lyons, Inc. | ||||||||
(Dollars in thousands) | ||||||||
Condensed Balance Sheets | ||||||||
December 31 | ||||||||
2015 | 2014 | |||||||
Assets | ||||||||
Investment in subsidiaries | $ | 405,192 | $ | 415,304 | ||||
Due from affiliates | 2,945 | 2,762 | ||||||
Investments other than subsidiaries: | ||||||||
Fixed maturities | 12,181 | 11,924 | ||||||
Limited partnerships | 208 | 233 | ||||||
12,389 | 12,157 | |||||||
Cash and cash equivalents | 17,934 | 16,615 | ||||||
Accounts receivable | 6,418 | 5,157 | ||||||
Other assets | 21,067 | 17,905 | ||||||
Total assets | $ | 465,945 | $ | 469,900 | ||||
Liabilities and shareholders' equity | ||||||||
Liabilities: | ||||||||
Premiums payable | $ | 21,672 | $ | 27,850 | ||||
Deposits from insureds | 23,484 | 18,303 | ||||||
Notes payable to bank | 20,000 | 20,000 | ||||||
Other liabilities | 6,291 | 4,251 | ||||||
71,447 | 70,404 | |||||||
Shareholders' equity: | ||||||||
Common stock: | ||||||||
Class A | 112 | 112 | ||||||
Class B | 529 | 527 | ||||||
Additional paid-in capital | 52,946 | 51,854 | ||||||
Unrealized net gains on investments | 38,924 | 51,840 | ||||||
Foreign exchange adjustment | (1,066 | ) | 390 | |||||
Retained earnings | 303,053 | 294,773 | ||||||
394,498 | 399,496 | |||||||
Total liabilities and shareholders' equity | $ | 465,945 | $ | 469,900 |
SCHEDULE II | ||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||
Form 10-K | ||||||
Baldwin & Lyons, Inc. | ||||||
(Dollars in thousands) | ||||||
Condensed Statements of Cash Flows | ||||||
Year Ended December 31 | ||||||
2012 | 2011 | 2010 | ||||
Net cash provided by operating activities | $20,735 | $13,255 | $32,296 | |||
Investing activities: | ||||||
Purchases of long-term investments | (8,944) | (10,025) | (10,889) | |||
Sales or maturities of long-term investments | 8,902 | 9,704 | 9,910 | |||
Decrease in notes receivable from employees | 1,252 | 106 | 611 | |||
Distributions from limited partnerships | - | 444 | 23 | |||
Net disposals (purchases) of property and equipment | (834) | (622) | 413 | |||
Other | 228 | 128 | 212 | |||
Net cash provided by (used in) investing activities | 604 | (265) | 280 | |||
Financing activities: | ||||||
Dividends paid to shareholders | (14,886) | (14,846) | (33,212) | |||
Drawing on line of credit | - | - | 8,000 | |||
Repayment on line of credit | - | (5,000) | (3,000) | |||
Net cash used in financing activities | (14,886) | (19,846) | (28,212) | |||
Increase (decrease) in cash and cash equivalents | 6,453 | (6,856) | 4,364 | |||
Cash and cash equivalents at beginning of year | 5,690 | 12,546 | 8,182 | |||
Cash and cash equivalents at end of year | $12,143 | $5,690 | $12,546 | |||
See notes to condensed financial statements | ||||||
SCHEDULE II | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
Form 10-K | ||||||||||||
Baldwin & Lyons, Inc. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Condensed Statements of Operations | ||||||||||||
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenue: | ||||||||||||
Commissions and service fees | $ | 23,523 | $ | 22,153 | $ | 21,597 | ||||||
Cash dividends from subsidiaries | 20,000 | 15,000 | 15,000 | |||||||||
Net investment income | 120 | 102 | 54 | |||||||||
Net realized losses on investments | (22 | ) | (27 | ) | (11 | ) | ||||||
Other | (17 | ) | 126 | 41 | ||||||||
43,604 | 37,354 | 36,681 | ||||||||||
Expenses: | ||||||||||||
Salary and related items | 17,616 | 15,543 | 15,965 | |||||||||
Other | 7,297 | 7,978 | 6,633 | |||||||||
24,913 | 23,521 | 22,598 | ||||||||||
Income before federal income taxes | ||||||||||||
and equity in undistributed | ||||||||||||
income of subsidiaries | 18,691 | 13,833 | 14,083 | |||||||||
Federal income tax benefit | (350 | ) | (294 | ) | (348 | ) | ||||||
19,041 | 14,127 | 14,431 | ||||||||||
Equity in undistributed income | ||||||||||||
of subsidiaries | 4,242 | 15,590 | 22,157 | |||||||||
Net income | $ | 23,283 | $ | 29,717 | $ | 36,588 |
SCHEDULE II | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
Form 10-K | ||||||||||||
Baldwin & Lyons, Inc. | ||||||||||||
(Dollars in thousands) | ||||||||||||
Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net cash provided by operating activities | $ | 21,841 | $ | 19,719 | $ | 15,125 | ||||||
Investing activities: | ||||||||||||
Purchases of long-term investments | (4,792 | ) | (6,398 | ) | (10,322 | ) | ||||||
Sales or maturities of long-term investments | 4,194 | 5,253 | 9,982 | |||||||||
Distributions from limited partnerships | - | 13 | - | |||||||||
Net purchases of property and equipment | (4,921 | ) | (6,873 | ) | (1,775 | ) | ||||||
Other | - | - | (362 | ) | ||||||||
Net cash used in investing activities | (5,519 | ) | (8,005 | ) | (2,477 | ) | ||||||
Financing activities: | ||||||||||||
Dividends paid to shareholders | (15,003 | ) | (14,947 | ) | (14,943 | ) | ||||||
Drawings on line of credit | - | 10,000 | - | |||||||||
Net cash used in financing activities | (15,003 | ) | (4,947 | ) | (14,943 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 1,319 | 6,767 | (2,295 | ) | ||||||||
Cash and cash equivalents at beginning of year | 16,615 | 9,848 | 12,143 | |||||||||
Cash and cash equivalents at end of year | $ | 17,934 | $ | 16,615 | $ | 9,848 | ||||||
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION | ||||||||||||||||||||
Form 10-K | ||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | ||||||||||
Year Ended December 31 | ||||||||||||||||||||
Reserves | ||||||||||||||||||||
for Unpaid | Other | Benefits, | Amortization | |||||||||||||||||
Deferred | Claims | Policy | Claims, | of Deferred | ||||||||||||||||
Policy | and Claim | Claims and | Net | Net | Losses and | Policy | Other | Net | ||||||||||||
Acquisition | Acquisition | Unearned | Benefits | Premium | Investment | Settlement | Acquisition | Operating | Premiums | |||||||||||
Segment | Costs | Expenses | Premiums | Payable | Earned | Income | Expenses | Costs | Expenses | Written | ||||||||||
(A) | (A) | (A) (B) | ||||||||||||||||||
Property/Casualty | ||||||||||||||||||||
Insurance | ||||||||||||||||||||
2012 | $ 3,091 | $ 455,454 | $ 37,273 | --- | $ 237,461 | $ 9,930 | $ 138,088 | $ 41,957 | $ 12,057 | $ 233,678 | ||||||||||
2011 | 4,578 | 421,556 | 39,919 | --- | 244,570 | 10,729 | 215,555 | 40,712 | 13,786 | 248,483 | ||||||||||
2010 | 4,826 | 344,520 | 29,819 | --- | 214,738 | 11,335 | 145,952 | 34,048 | 13,813 | 218,645 |
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION | ||||||||||||||||||||||||||||||||||||||||
Form 10-K | ||||||||||||||||||||||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | ||||||||||||||||||||||||||||||
As of December 31 | Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||
Reserves | ||||||||||||||||||||||||||||||||||||||||
for Unpaid | Other | Benefits, | Amortization | |||||||||||||||||||||||||||||||||||||
Deferred | Claims | Policy | Claims, | of Deferred | ||||||||||||||||||||||||||||||||||||
Policy | and Claim | Claims and | Net | Net | Losses and | Policy | Other | Net | ||||||||||||||||||||||||||||||||
Acquisition | Acquisition | Unearned | Benefits | Premium | Investment | Settlement | Acquisition | Operating | Premiums | |||||||||||||||||||||||||||||||
Segment | Costs | Expenses | Premiums | Payable | Earned | Income | Expenses | Costs | Expenses | Written | ||||||||||||||||||||||||||||||
(C) | (A) | (B) (C) | ||||||||||||||||||||||||||||||||||||||
Property/Casualty | ||||||||||||||||||||||||||||||||||||||||
Insurance | ||||||||||||||||||||||||||||||||||||||||
2015 | $ | 1,443 | $ | 464,305 | $ | 18,579 | --- | $ | 242,364 | $ | 12,498 | $ | 142,258 | $ | 50,270 | $ | 13,682 | $ | 238,330 | |||||||||||||||||||||
2014 | 2,263 | 449,133 | 23,659 | --- | 224,683 | 9,055 | 139,308 | 48,872 | 14,033 | 224,258 | ||||||||||||||||||||||||||||||
2013 | 2,319 | 408,469 | 26,303 | --- | 202,785 | 8,770 | 133,005 | 47,414 | 14,459 | 201,817 | ||||||||||||||||||||||||||||||
Reinsurance | ||||||||||||||||||||||||||||||||||||||||
2015 | --- | $ | 49,291 | $ | 6,712 | --- | $ | 20,971 | $ | 12,498 | $ | 13,492 | --- | $ | 13,682 | $ | 16,323 | |||||||||||||||||||||||
2014 | --- | 56,969 | 11,360 | --- | 36,944 | 9,055 | 20,288 | --- | 14,033 | 37,913 | ||||||||||||||||||||||||||||||
2013 | --- | 66,001 | 10,390 | --- | 49,958 | 8,770 | 17,696 | --- | 14,459 | 51,867 |
SCHEDULE IV -- REINSURANCE | ||||||||||||||||||||
Form 10-K | ||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
% of | ||||||||||||||||||||
Ceded | Assumed | Amount | ||||||||||||||||||
Direct | to Other | from Other | Net | Assumed to | ||||||||||||||||
Premiums | Companies | Companies | Amount | Net | ||||||||||||||||
Premiums Earned - | ||||||||||||||||||||
Property/casualty insurance: | ||||||||||||||||||||
Years Ended December 31: | ||||||||||||||||||||
2015 | $ | 370,499 | $ | 128,697 | $ | 21,533 | $ | 263,335 | 8.0 | |||||||||||
2014 | 342,656 | 119,248 | 38,219 | 261,627 | 14.1 | |||||||||||||||
2013 | 313,842 | 113,882 | 52,783 | 252,743 | 19.8 |
SCHEDULE IV -- REINSURANCE | ||||||||||||||||||||
Form 10-K | ||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||||
% of | ||||||||||||||||||||
Ceded | Assumed | Amount | ||||||||||||||||||
Direct | to Other | from Other | Net | Assumed to | ||||||||||||||||
Premiums | Companies | Companies | Amount | Net | ||||||||||||||||
Premiums Earned - | ||||||||||||||||||||
Property/casualty insurance: | ||||||||||||||||||||
Years Ended December 31: | ||||||||||||||||||||
2012 | $ | 287,982 | $ | 103,712 | $ | 53,191 | $ | 237,461 | 21.4 | |||||||||||
2011 | 270,002 | 85,493 | 60,061 | 244,570 | 23.8 | |||||||||||||||
2010 | 245,912 | 73,119 | 41,945 | 214,738 | 19.0 |
SCHEDULE VI--SUPPLEMENTAL INFORMATION | |||||||||||||||||
CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | |||||||||||||||||
Form 10-K | |||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | |||||||
As of December 31 | Year Ended December 31 | ||||||||||||||||
Claims and Claim | Amortiza- | ||||||||||||||||
Adjustment Expenses | tion of | ||||||||||||||||
Incurred Related to | Deferred | Paid Claims | |||||||||||||||
AFFILIATION | Deferred Policy | Reserves for Unpaid Claims | Discount, if any | (1) | (2) | Policy | and Claim | Net | |||||||||
WITH | Policy Acquisition | and Claim Adjustment | Deducted in | Unearned | Earned | Net Investment | Current | Prior | Acquisition | Adjustment | Premiums | ||||||
REGISTRANT | Costs | Expenses | Column C | Premiums | Premiums | Income | Year | Years | Costs | Expenses | Written | ||||||
Consolidated Property/Casualty Subsidiaries: | (A) | ||||||||||||||||
2015 | $1,443 | $513,596 | $2,110 | $25,291 | $263,335 | $12,498 | $165,812 | $(10,062) | $50,270 | $149,580 | $254,653 | ||||||
2014 | 2,263 | 506,102 | 3,129 | 35,019 | 261,627 | 9,055 | 169,950 | (10,354) | 48,872 | 152,101 | 262,171 | ||||||
2013 | 2,319 | 474,470 | 5,885 | 36,693 | 252,743 | 8,770 | 156,264 | (5,563) | 47,414 | 151,849 | 253,684 |
SCHEDULE VI--SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||
CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | ||||||||||||||||||||||||
Form 10-K | ||||||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | ||||||||||||||
As of December 31 | Year Ended December 31 | |||||||||||||||||||||||
Reserves | Claims and Claim | Amortiza- | ||||||||||||||||||||||
for Unpaid | Discount, | Adjustment Expenses | tion of | |||||||||||||||||||||
Deferred | Claims | if any | Incurred Related to | Deferred | Paid Claims | |||||||||||||||||||
AFFILIATION | Policy | and Claim | Deducted | Net | (1) | (2) | Policy | and Claim | Net | |||||||||||||||
WITH | Acquisi- | Adjustment | in | Unearned | Earned | Investment | Current | Prior | Acquisition | Adjustment | Premiums | |||||||||||||
REGISTRANT | tion Costs | Expenses | Column C | Premiums | Premiums | Income | Year | Years | Costs | Expenses | Written | |||||||||||||
Consolidated Property/Casualty Subsidiaries: | (A) | |||||||||||||||||||||||
2012 | $3,091 | $455,454 | $6,118 | $37,273 | $237,461 | $9,930 | $147,964 | $(9,875) | $41,957 | $138,945 | $233,678 | |||||||||||||
2011 | 4,578 | 421,556 | 6,642 | 39,919 | 244,570 | 10,729 | 225,251 | (9,696) | 40,712 | 144,092 | 248,483 | |||||||||||||
2010 | 4,826 | 344,520 | 6,463 | 29,819 | 214,738 | 11,335 | 154,775 | (8,823) | 34,048 | 130,576 | 218,645 |
March | By | |
Joseph J. DeVito, Director, Chief Executive Officer and President |
March | By | |
March | By | |
G. Patrick Corydon, Executive Vice President and CFO (Principal Financial and Accounting Officer) |
March 4, 2016 March 4, 2016 | By /s/ Stuart D. Bilton Stuart D. Bilton, Director By /s/ Jeffrey S. Cohen | |
Jeffrey S. Cohen, Director |
March | By | |
Joseph J. DeVito, Director, Chief Executive Officer and President |
March | By | |
Otto N. Frenzel IV, Director |
March | 4, 2016 By | ||
Gary W. Miller, Deputy Chairman |
March 4, 2016 March 4, 2016 | By /s/ Philip V. Moyles Jr. Philip V. Moyles Jr., Director By /s/ John M. O'Mara John M. O'Mara, Director |
March | By | |
Thomas H. Patrick, Director |
March | By | |
John A. Pigott, Director |
March | By | |
Kenneth D. Sacks, Director |
March | By | |
Nathan Shapiro, Director |
March | By | |
Norton Shapiro, Director |
March | By | |
Robert Shapiro, Director |
March | By | |
Director |
Exhibit No. | Begins on sequential page number of Form 10-K |
EXHIBIT 3(i)-- Articles of Incorporation of Baldwin & Lyons, Inc. as amended (Incorporated as an exhibit by reference to Exhibit 3(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 1986) | N/A |
EXHIBIT 3(ii)-- By-Laws of Baldwin & Lyons, Inc., as restated | N/A |
EXHIBIT 10(a)-- 1981 Employees Stock Purchase Plan (Incorporated as an exhibit by reference to Exhibit A to the Company's definitive Proxy Statement for its Annual Meeting held May 5, 1981) | N/A |
EXHIBIT 10(f)-- Baldwin & Lyons, Inc. Executive Incentive Bonus Plan (Incorporated as an exhibit by reference to the Company's definitive Proxy Statement for its Annual Meeting held May | |
N/A | |
EXHIBIT 21-- Subsidiaries of Baldwin & Lyons, Inc. | 84 |
EXHIBIT 23-- Consent of Ernst & Young LLP | 85 |
EXHIBIT 24-- Powers of Attorney for certain Officers and Directors | 86 - 88 |
EXHIBIT 31.1-- Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | 89 |
EXHIBIT 31.2-- Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | 91 |
EXHIBIT 32.1-- Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | 93 |