SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2011

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Balance Sheets
	December 31
	2011		2010
Assets
Investment in subsidiaries	$	334,328	$	386,433
Due from affiliates		5,282		3,866
Investments other than subsidiaries:
Fixed maturities		11,353		11,265
Limited partnerships		291		704
		11,644		11,969
Cash and cash equivalents		5,690		12,546
Accounts receivable		5,890		5,986
Notes receivable from employees		1,302		1,414
Other assets		6,392		5,747
Total assets	$	370,528	$	427,961
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	26,367	$	27,147
Deposits from insureds		13,682		15,196
Notes payable to bank		10,000		15,000
Current payable federal income taxes		368		335
Other liabilities		1,050		1,548
		51,467		59,226
Shareholders' equity:
Common stock:
Class A		112		112
Class B		522		520
Additional paid-in capital		48,751		47,874
Unrealized net gains on investments		26,592		33,894
Retained earnings		243,084		286,335
		319,061		368,735
Total liabilities and shareholders' equity	$	370,528	$	427,961
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
	2011			2010			2009
Revenue:
Commissions and service fees	$	20,974		$	21,913		$	19,182
Dividends from subsidiaries		14,000			15,000			15,000
Net investment income		100			135			506
Net realized gains (losses) on investments		67			(100	)		37
Other		98			284			92
		35,239			37,232			34,817
Expenses:
Salary and related items		12,281			12,869			14,145
Other		5,550			5,615			5,274
		17,831			18,484			19,419
Income before federal income taxes
and equity in undistributed
income of subsidiaries		17,408			18,748			15,398
Federal income tax (benefit)		1,004			1,195			(496	)
		16,404			17,553			15,894
Equity in undistributed income (loss)
of subsidiaries		(44,579	)		7,462			28,908
Net income (loss)	$	(28,175	)	$	25,015		$	44,802
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 Cash Flows
	Year Ended December 31
	2011			2010			2009
Net cash provided by operating activities	$	13,255		$	32,296		$	18,309
Investing activities:
Purchases of long-term investments		(10,025	)		(10,889	)		(6,803	)
Sales or maturities of long-term investments		9,704			9,910			7,343
Decrease in notes receivable from employees		106			611			143
Distributions from limited partnerships		444			23			23
Net disposals (purchases) of property and equipment		(622	)		413			(2,124	)
Other		128			212			188
Net cash provided by (used in) investing activities		(265	)		280			(1,230	)
Financing activities:
Dividends paid to shareholders		(14,846	)		(33,212	)		(14,744	)
Drawing on line of credit		-			8,000			11,000
Repayment on line of credit		(5,000	)		(3,000	)		(10,000	)
Cost of treasury shares		-			-			(880	)
Net cash used in financing activities		(19,846	)		(28,212	)		(14,624	)
Increase (decrease) in cash and cash equivalents		(6,856	)		4,364			2,455
Cash and cash equivalents at beginning of year		12,546			8,182			5,727
Cash and cash equivalents at end of year	$	5,690		$	12,546		$	8,182
See notes to condensed financial statements

Note to Condensed Financial Statements--Basis of Presentation

The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition.  The Company's share of net income of its subsidiaries is included in income using the equity method.  These financial statements should be read in conjunction with the Company's consolidated financial statements.