Baldwin & Lyons, Inc. Presents at the 7th Annual NYSSA Insurance Conference
INDIANAPOLIS--Jan. 28, 2003--The following is a summary of a presentation today (Tuesday) at the New York Society of Security Analysts by Gary W. Miller, chairman and CEO of Baldwin & Lyons, Inc.Baldwin & Lyons, Inc , today addressed the NYSSA Insurance conference. In speaking to the industry participants, Gary W. Miller, chairman and CEO of Baldwin & Lyons, Inc., discussed the company strategy and the current state of the property-casualty market, in addition to giving an update on the company's recently released earnings results.
Baldwin & Lyons (B&L) is a property-casualty insurer that covers a variety of specialty liability niches for the trucking industry, as well as writing nonstandard automobile insurance, workers compensation insurance for small businesses and assumed reinsurance. Rated A+ by A.M. Best and based in Indianapolis, IN, the company has been in operation since 1930. B&L's subsidiary, Protective Insurance Company, represents approximately 60 percent of gross direct premiums, while the remaining 40 percent is written through a wide network of independent agents under its Sagamore Insurance Company. Total assets at December 31, 2002, stood at $644 million and shareholders' equity at $285 million. Over the past 10 years, book value per share has grown at a compound rate exceeding 7 percent per year. In 2002, each of the company's business segments contributed to record operating earnings of $1.96 per share.
Following four consecutive record quarters in operating income, management anticipates continued growth in 2003 based on these factors:
| -- | Positive trends in commercial insurance rates driven by cost increases for reinsurance protection, as companies are adjusting for prior-period losses and low investment yields. |
| -- | Further gains in B&L's Fleet Trucking Group, the biggest contributor to pre-tax income. This operation continues to produce strong returns driven by premium growth and a combined ratio under 90 percent. |
| -- | Improvements in the Nonstandard Auto Insurance segment resulting from pricing adjustments and improved underwriting efforts since FY 2000. |
| -- | Seasoned senior management team has industry expertise on average of 30 years. B&L's senior managers follow a disciplined approach for profitably in cultivating new business, backed by unequaled risk selection, underwriting and claims experience in the trucking sector. Management growth objectives include expansion into new geographic areas, driving further cost reductions, and enhancing service levels through the use of technology including extensive internet interface with agents and trucking company insureds. |
| -- | Conservative capital structure including $446 million in high quality invested assets and less than $8 million in debt. The company has a net ratio of loss reserves to capital and surplus of 51%, providing significant capital for business expansion. |
Commenting on the company's recent operating performance, Miller stated, "2002 was most favorable for the Company's products with large volume increases and excellent loss ratios resulting in record operating earnings. Our combined ratios are among the industry's best. With expected further volume increases and continuation of underwriting profitability, we are optimistic for 2003."
About the Company
Baldwin & Lyons, Inc., based in Indianapolis, Indiana, is a specialty property-casualty insurer with a leading position in providing coverage for large, medium sized and small trucking fleets. Additionally, the company offers products covering private passenger automobiles, workers' compensation for small businesses and assumes reinsurance from other companies, principally covering catastrophic events.
Forward-looking statements in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve inherent risks and uncertainties. Readers are encouraged to review the Company's annual report for its full statement regarding forward-looking information.
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