Baldwin & Lyons, Inc. (BWINB) has reported a 48.57 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4 million, or $0.27 a share in the quarter, compared with $7.78 million, or $0.52 a share for the same period last year.
Revenue during the quarter grew 23.90 percent to $83.69 million from $67.55 million in the previous year period. Net premium earned for the quarter increased 8.85 percent or $5.79 million to $71.24 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $78.05 million, or 109.57 percent of premium earned from $55.94 million or 85.47 percent of premium earned in the last year period. Operating income for the quarter was $5.64 million, compared with $11.61 million in the previous year period. Net investment income was at $3.51 million for the quarter, up 16.56 percent or $0.50 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved up marginally by 2.90 percent or $0.03 million to $1.21 million. The company has recorded a gain on investments of $7.73 million in the quarter compared with a loss of $2.09 million for the previous year period.
Operating cash flow improves
Baldwin & Lyons, Inc. has generated cash of $32.40 million from operating activities during the nine month period, up 5.16 percent or $1.59 million, when compared with the last year period. The company has spent $27.08 million cash to meet investing activities during the nine month period as against cash outgo of $13.42 million in the last year period.
The company has spent $11.88 million cash to carry out financing activities during the nine month period as against cash outgo of $11.27 million in the last year period.
Cash and cash equivalents stood at $67.37 million as on Sep. 30, 2016, down 3.27 percent or $2.28 million from $69.65 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 4.74 percent or $51.82 million to $1,145.38 million on Sep. 30, 2016. On the other hand, total liabilities were at $738.46 million as on Sep. 30, 2016, up 5.39 percent or $37.78 million from year-ago.
Return on assets stood at 0.35 percent in the quarter, down 0.36 from 0.71 percent in the last year period. At the same time, return on equity was at 0.98 percent in the quarter, down 1 from 1.98 percent in the last year period.
Investments move up
Investments stood at $699.29 million as on Sep. 30, 2016, up 5.62 percent or $37.23 million from year-ago. Meanwhile, yield on investments went up 5 basis points to 0.50 percent in the quarter. Meanwhile, reinsurance recoverables moved up 8.51 percent or $19 million over the year to $242.18 million on Sep. 30, 2016.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $565.56 million as on Sep. 30, 2016, up 9.41 percent or $48.63 million from year-ago.
Total debt was stable over the past one year at $20 million on Sep. 30, 2016. Shareholders equity stood at $406.92 million as on Sep. 30, 2016, up 3.57 percent or $14.04 million from year-ago. As a result, debt to equity ratio was almost stable at 0.05 percent in the quarter, when compared with the last year period.
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