SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2012

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
	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 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

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.