8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

_____________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

____________________________________

Date of Report (Date of earliest event reported): August 1, 2013

BALDWIN & LYONS, INC.

___________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana	0-5534	35-0160330
(State of other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

1099 North Meridian Street, Indianapolis, Indiana	46204
(Address of principle executive offices)	(Zip Code)

Registrant’s telephone number, including area code:                                       (317) 636-9800

                                                                                      _______________________________________________

Not applicable

                                                                                                                                                                                                                    __________________________________________________________________________________________

 (Former name of former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[   ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CRF 240.14a-12)

[   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-

       2(b))

[   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-

      4(c))

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Item 7.01  Regulation FD Disclosure

The following information, including the Exhibit to this Form 8-K, is being furnished pursuant to Item 2.02 - Results of Operations and Financial Condition of Form 8-K and is being presented under Item 7.01 of Form 8-K. This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

On August 1, 2013, Baldwin & Lyons, Inc. (the Company) issued a press release announcing the results of its operations for the second quarter and six months ended June 30, 2013.  A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 9.01 as if fully set forth herein.

Throughout its press release and in the conference call to discuss the results of its operations for the second quarter of 2013, the Company presents and will present its results and operations in the manner it believes will be the most meaningful, which includes some measures that are not based on accounting principles generally accepted in the United States (GAAP).

The Company’s management uses the term operating revenue, a non-GAAP financial measure, which is defined as revenue excluding pre-tax investment gains and losses. It also uses the term operating income which is defined as net income excluding after tax investment gains and losses. These financial measures are used to evaluate the Company’s performance because the recognition of investment gains and losses in any given period is largely discretionary as to timing and could distort the analysis of trends. The Company believes that the defined terms are used commonly in the property/casualty insurance industry and that equity analysts and the Company’s significant shareholders exclude gains and losses on investments in their analysis of the Company’s results for the same reason.

The combined ratios and the components thereof, as presented herein, are commonly used in the property/casualty insurance industry and are applied to the Company’s GAAP underwriting results.

A copy of this press release is also posted on the Company’s website.

Item 9.01  Financial Statements and Exhibits

(c) Exhibits.

99.1  Baldwin & Lyons, Inc. press release dated August 1, 2013.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BALDWIN & LYONS, INC.

August 1, 2013                                                                   by:  /s/ Joseph J. DeVito                                                                                        

Joseph J. DeVito

Chief Executive Officer and President

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EX-99.1

Baldwin & Lyons, Inc.

Protective Insurance Company

Sagamore Insurance Company

B & L Insurance, Ltd. (Bermuda)

1099 North Meridian Street

Indianapolis, IN 46204

(317) 636-9800

Baldwin & Lyons, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            August 1, 2013

Unaudited Second Quarter Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Press Contact:  G. Patrick Corydon

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (317) 636-9800

 corydon@baldwinandlyons.com

BALDWIN & LYONS ANNOUNCES RESULTS FOR QUARTER AND SIX MONTHS

Indianapolis, Indiana, August 1, 2013—Baldwin & Lyons, Inc. (NASDAQ: BWINA, BWINB) today announcedafter tax net income of $4.9 million, or $.33 per share, which compares to $4.1 million, or $.27 per share, for the prior year’s second quarter.  After tax operating income, defined as net income before investment gains and losses, was $4.4 million, or $.30 per share, for the second quarter of 2013 compared to $7.6 million, or $.51 per share, during the second quarter of 2012.  Net investment gains for the second quarter of 2013, which include both realized and unrealized gains in the Company’s limited partnership investments, were $0.5 million after tax, or $.03 per share, compared to net investment losses of $3.5 million, or $.24 per share, in the same quarter of 2012.

After tax net income for the first six months of 2013 totaled $19.9 million, or $1.33 per share, compared to $15.6 million, or $1.05 per share, for the prior year period.  After tax operating income for the current year to date totaled $10.1 million, or $.67 per share, which compares to $15.6 million, or $1.05 per share, during the prior year period.  Net investment gains for the six months of 2013 were a record $9.8 million after tax, or $.66 per share, compared to breakeven results produced during the same period of 2012.

Premiums written by the Company’s insurance subsidiaries for the current quarter was a record $92.8 million, an increase of 18% when compared to the prior year second quarter and 11% above last quarter’s total.  The increase resulted primarily from a 25% increase in premium written in the Company’s core fleet transportation products.  The “wheels” increases were partially offset by premium reductions associated with final termination of the commercial multi-peril program and significant reductions in property reinsurance exposure.  Premiums written for the six months of 2013 totaled a record $176.7 million compared to last year’s prior record six months writings of $168.9 million, with product group increases and decreases similar to those experienced in the second quarter.

Net premium earned for the second quarter of 2013 increased by 4% over last year, to $61.8 million.  For the six months, earned premium, while limited by the strategic reductions in property reinsurance and commercial multi-peril business, increased 1% to a record $122.9 million.

The Company’s consolidated combined ratio for the second quarter was 94.0%, before consideration of fee income.  Including fee income, underwriting income was $4.3 million, producing a combined ratio of 93.2%.  The Property and Casualty Insurance segment combined ratio was 98.4% without fees and 97.3%, including fee income. The Reinsurance segment combined ratio was a very good 75.7% in the second quarter despite moderate losses from Texas and Oklahoma windstorms and tornados.  For the six months, the consolidated combined ratio was 92.3%, before consideration of fee income, and 91.5% including fees, producing $10.6 million in pre-tax underwriting income.  The Property and Casualty Insurance segment combined ratio was 98.2% without fees and 97.1%, including fee income.  The Reinsurance segment combined ratio was 69.5% for the six months.

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Pre-tax investment income decreased 17% compared to the second quarter of 2012 despite a 1% increase in average funds invested, reflecting the continuing impact of available bond yields.  For the six months, pre-tax and after-tax investment income decreased 9% compared to the same period of 2012 while average funds invested increased over 3%.

Book value per share increased $.16 per share during the second quarter before the payment of $.25 per share in regular cash dividends.  The second quarter book value was negatively impacted by what may likely be a temporary increase in interest rates which reduced the values of virtually every outstanding bond.  While our bond portfolio is extremely short, we were not immune from this valuation impact and posted an unrealized capital loss of $.16 per share.  For the six months ended June 30, 2013, book value per share has increased $1.20 before the payment of cash dividends to shareholders totaling $.50 per share.  The combination of the increase in book value and dividends represents a 5.2% total return on beginning book value for the six months.

Conference Call Information:

Baldwin & Lyons, Inc. has scheduled a conference call for Thursday, August 1, 2013, at 11:00 AM ET (New York time) to discuss results for the second quarter ended June 30, 2013.

To participate via teleconference, investors may dial 1-888-428-9490 (U.S./Canada) or 1-719-785-1765 (International or local) at least five minutes prior to the beginning of the call.  A replay of the call will be available through August 8, 2013 by calling 1-877-870-5176 or 1-858-384-5517 and referencing passcode 9869965.  Investors and interested parties may also listen to the call via a live webcast, accessible on the company’s web site via a link at the top of the main Investor Relations page.  To participate in the webcast, please register at least fifteen minutes prior to the start of the call.  The webcast will be archived on this site until May 2, 2014.  The webcast may be accessed directly at: http://public.viavid.com/index.php?id=105007

Also available on the investor relations section of our web site are complete interim financial statements and copies of our filings with the Securities and Exchange Commission.

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Financial Highlights (unaudited)
Baldwin & Lyons, Inc. and Subsidiaries
(In thousands, except per share data)	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
Operating revenue	$	65,299		$	63,709		$	130,190		$	129,187
Net investment gains (losses)		719			(5,453	)		15,066			(73	)
Total revenue	$	66,018		$	58,256		$	145,256		$	129,114
Operating income	$	4,440		$	7,595		$	10,057		$	15,603
Net investment gains (losses),
net of federal income taxes		467			(3,545	)		9,793			(47	)
Net income	$	4,907		$	4,050		$	19,850		$	15,556
Per share data - diluted:
Average number of shares		14,918			14,860			14,918			14,856
Operating income	$	.30		$	.51		$	.67		$	1.05
Net investment gains (losses)		.03			(.24	)		.66			(.00	)
Net income	$	.33		$	.27		$	1.33		$	1.05
Dividends paid to shareholders	$	.25		$	.25		$	.50		$	.50
Annualized return on average
shareholders' equity:
Operating income		5.5	%		10.1	%		6.3	%		10.5	%
Net income		6.1	%		5.4	%		12.5	%		10.5	%
Consolidated combined ratio of
insurance subsidiaries (GAAP basis):
Without fee income		94.0	%		87.2	%		92.3	%		86.8	%
Including fee income		93.2	%		86.4	%		91.5	%		85.9	%

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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