10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

Form 10-Q

Quarterly Report Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

                                                                                                                                                       For Quarter EndedCommission file number

                                                                                                                                                      March 31, 20170-5534

BALDWIN & LYONS, INC.

(Exact name of registrant as specified in its charter)

INDIANA (State or other jurisdiction of  Incorporation or organization	35-0160330 (I.R.S. Employer Identification Number)
111 Congressional Boulevard, Carmel, Indiana (Address of principal executive offices)	46032 (Zip Code)

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes       No___

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes       No ____

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ____    Accelerated filer Non-accelerated filer ____

Smaller reporting company ____   Emerging growth company ____

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ____    No 

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of May 1, 2017:

Common Stock, No Par Value:                                                               Class A (voting)                   2,623,109

                                                                                                          Class B (nonvoting)           12,481,081

                                                                                                                                                         15,104,190

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PART I – FINANCIAL INFORMATION

ITEM 1  FINANCIAL STATEMENTS

Baldwin & Lyons, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheets
(in thousands, except share data)
	March 31			December 31
	2017			2016
Assets
Investments:
Fixed maturities	$	508,802		$	491,904
Equity securities		135,514			119,945
Limited partnerships		65,739			76,469
Short-term and other		1,500			1,500
		711,555			689,818
Cash and cash equivalents		61,761			62,976
Accounts receivable		67,303			64,984
Reinsurance recoverable		262,423			255,024
Other assets		75,148			78,732
Current federal income taxes recoverable		-			2,603
	$	1,178,190		$	1,154,137
Liabilities and shareholders' equity
Reserves for losses and loss expenses	$	578,841		$	576,330
Reserves for unearned premiums		25,968			21,694
Short-term borrowings		20,000			20,000
Accounts payable and other liabilities		125,375			120,356
Current federal income taxes		946			-
Deferred federal income taxes		14,158			11,412
		765,288			749,792
Shareholders' equity:
Common stock-no par value:
Class A voting -- authorized 3,000,000 shares;
outstanding -- 2017 - 2,623,109; 2016 - 2,623,109		112			112
Class B non-voting -- authorized 20,000,000 shares;
outstanding -- 2017 - 12,481,081; 2016 - 12,460,900		533			532
Additional paid-in capital		54,766			54,286
Unrealized net gains on investments		39,386			34,051
Foreign exchange adjustment		(766	)		(831	)
Retained earnings		318,871			316,195
		412,902			404,345
	$	1,178,190		$	1,154,137

See notes to condensed consolidated financial statements.

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Baldwin & Lyons, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(in thousands, except per share data)
	Three Months Ended
	March 31
	2017		2016
Revenues
Net premiums earned	$	73,974	$	66,909
Net investment income		3,692		3,440
Commissions and other income		981		1,364
Net realized gains on investments, excluding
impairment losses		6,294		11,072
Total other-than-temporary impairment losses on investments		-		(2,060	)
Net realized gains on investments		6,294		9,012
		84,941		80,725
Expenses
Losses and loss expenses incurred		48,599		38,623
Other operating expenses		26,164		20,664
		74,763		59,287
Income before federal income taxes		10,178		21,438
Federal income taxes		3,422		7,326
Net income	$	6,756	$	14,112
Per share data:
Basic and diluted earnings	$	.45	$	.94
Dividends paid to shareholders	$	.27	$	.26
Reconciliation of shares outstanding:
Average shares outstanding - basic		15,096		15,044
Dilutive effect of share equivalents		8		32
Average shares outstanding - diluted		15,104		15,076

See notes to condensed consolidated financial statements.

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Baldwin & Lyons, Inc. and Subsidiaries
Unaudited Consolidated Statements of Comprehensive Income
(in thousands)
	Three Months Ended
	March 31
	2017		2016
Net income	$	6,756	$	14,112
Other comprehensive income (loss), net of tax:
Unrealized net gains (losses) on securities:
Unrealized net gains (losses) arising during the period		5,990		(775	)
Less: reclassification adjustment for net gains (losses)
included in net income		655		7,275
		5,335		(8,050	)
Foreign currency translation adjustments		65		419
Other comprehensive income (loss)		5,400		(7,631	)
Comprehensive income	$	12,156	$	6,481

See notes to condensed consolidated financial statements.

- 4 -

Baldwin & Lyons, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(in thousands)
	Three Months Ended
	March 31
	2017			2016
Net cash provided by operating activities	$	6,398		$	1,973
Investing activities:
Purchases of available-for-sale investments		(115,947	)		(112,301	)
Proceeds from sales or maturities
of available-for-sale investments		105,282			89,042
Net (purchases) sales of short-term investments		(7,290	)		5
Other investing activities		14,357			(1,154	)
Net cash used in investing activities		(3,598	)		(24,408	)
Financing activities:
Dividends paid to shareholders		(4,080	)		(3,977	)
Net cash used in financing activities		(4,080	)		(3,977	)
Effect of Foreign exchange rates on cash and cash equivalents		65			419
Decrease in cash and cash equivalents		(1,215	)		(25,993	)
Cash and cash equivalents at beginning of period		62,976			73,538
Cash and cash equivalents at end of period	$	61,761		$	47,545

See notes to condensed consolidated financial statements.

- 5 -

Notes to Unaudited Condensed Consolidated Financial Statements

(All dollar amounts presented in these notes are in thousands, except per share data)

(1) Summary of Significant Accounting Policies

Description of Business:  Baldwin & Lyons, Inc. (the "Company"), based in Carmel, Indiana, is a specialty property-casualty insurer providing liability coverage for large to small-sized trucking and public transportation fleets.   The Company operates as one reportable property and casualty insurance segment, offering a range of products and services, the most significant being commercial automobile and workers' compensation insurance products.

The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017.  During 2016 and prior years, the Company had two reportable segments - property and casualty insurance and reinsurance.  The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance.  The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.  Interim financial statements should be read in conjunction with the Company's annual audited financial statements and other disclosures included in the Company's most recent Annual Report on Form 10-K.  Operating results for interim periods are not necessarily indicative of results that may be expected for the year ended December 31, 2017.

Investments:  Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available.  Equity securities are carried at quoted market prices (fair value).  The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income.  To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of income, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses.

Short-term and other investments are carried at cost, which approximates their fair values.

Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of cost of investments sold and are included in income.  All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders' equity.  Included within available for sale fixed maturity securities are convertible debt securities.  The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses) on investments.

- 6 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the condensed consolidated statements of operations.   For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the condensed consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders' equity (accumulated other comprehensive income).

The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security.  The net present value is calculated by discounting the Company's best estimate of projected future cash flows at the appropriate effective interest rate.

The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders' equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income.  In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost.   For any equity security where the unrealized loss exceeds a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment.  For any equity security where the decline has existed for a period of at least one year, the decline is treated as an other-than-temporary impairment.  Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration of the Company's quantitative criteria defined above, as well as the Company's intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value.

- 7 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

Recent Accounting Pronouncements:  In January 2016, the FASB issued Accounting Standards Update "ASU" 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01.  The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income.  Under current guidance, changes in fair value for investments of this nature are recognized in accumulated other comprehensive income as a component of shareholders' equity.  Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments.  ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017.  The Company has not yet evaluated the impact of this guidance.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects that adoption of ASU 2016-13 will have on its consolidated financial statements, results of operations and cash flows.

- 8 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04.  This amendment removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation.  The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value.  ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

- 9 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

(2) Investments:

The following is a summary of available-for-sale securities at March 31, 2017 and December 31, 2016:

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
March 31, 2017
Fixed maturities
Agency collateralized mortgage obligations	$	7,446	$	7,065	$	381	$	-		$	381
Agency mortgage-backed securities		10,693		10,683		54		(44	)		10
Asset-backed securities		48,241		47,306		1,015		(80	)		935
Bank loans		9,144		9,041		120		(17	)		103
Certificates of deposit		3,119		3,125		-		(6	)		(6	)
Collateralized mortgage obligations		6,119		6,034		262		(177	)		85
Corporate securities		182,308		181,917		2,056		(1,665	)		391
Mortgage-backed securities		24,019		23,735		880		(596	)		284
Municipal obligations		128,883		128,818		621		(556	)		65
Non-U.S. government obligations		21,428		22,545		254		(1,371	)		(1,117	)
U.S. government obligations		67,402		67,683		60		(341	)		(281	)
Total fixed maturities		508,802		507,952		5,703		(4,853	)		850
Equity securities:
Consumer		41,624		21,194		20,825		(395	)		20,430
Energy		11,025		5,552		5,514		(41	)		5,473
Financial		35,109		25,836		9,522		(249	)		9,273
Industrial		24,147		7,981		16,336		(170	)		16,166
Technology		9,518		3,933		5,585		-			5,585
Mutual fund		7,311		6,930		472		(91	)		381
Other		6,780		4,344		2,633		(197	)		2,436
Total equity securities		135,514		75,770		60,887		(1,143	)		59,744
Total	$	644,316	$	583,722	$	66,590	$	(5,996	)		60,594
							Applicable federal income taxes				(21,208	)
							Net unrealized gains - net of tax			$	39,386

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Notes to Unaudited Condensed Consolidated Financial Statements (continued)

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
December 31, 2016
Fixed maturities
Agency collateralized mortgage obligations	$	6,171	$	6,000	$	171	$	-		$	171
Agency mortgage-backed securities		4,770		4,751		57		(38	)		19
Asset-backed securities		45,183		45,207		458		(482	)		(24	)
Bank loans		10,349		10,222		149		(22	)		127
Certificates of deposit		3,117		3,126		-		(9	)		(9	)
Collateralized mortgage obligations		9,104		9,096		290		(282	)		8
Corporate securities		142,683		143,356		1,643		(2,316	)		(673	)
Mortgage-backed securities		24,571		23,904		1,132		(465	)		667
Municipal obligations		129,335		130,204		391		(1,260	)		(869	)
Non-U.S. government obligations		24,681		26,461		230		(2,010	)		(1,780	)
U.S. government obligations		91,940		92,234		74		(368	)		(294	)
Total fixed maturities		491,904		494,561		4,595		(7,252	)		(2,657	)
Equity securities:
Consumer		32,576		15,231		17,656		(311	)		17,345
Energy		12,842		5,641		7,203		(2	)		7,201
Financial		31,186		22,417		8,998		(229	)		8,769
Industrial		21,145		6,239		15,098		(192	)		14,906
Technology		8,858		4,117		4,769		(28	)		4,741
Mutual fund		6,995		6,930		121		(56	)		65
Other		6,343		4,327		2,181		(165	)		2,016
Total equity securities		119,945		64,902		56,026		(983	)		55,043
Total	$	611,849	$	559,463	$	60,621	$	(8,235	)		52,386
							Applicable federal income taxes				(18,335	)
							Net unrealized gains - net of tax			$	34,051

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Notes to Unaudited Condensed Consolidated Financial Statements (continued)

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at March 31, 2017 and December 31, 2016, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position.

	March 31, 2017							December 31, 2016
	Number of Securities		Fair Value		Gross Unrealized Loss			Number of Securities		Fair Value		Gross Unrealized Loss
Fixed maturity securities:
12 months or less		375	$	258,128	$	(3,133	)		397	$	291,048	$	(4,380	)
Greater than 12 months		36		10,003		(1,720	)		54		32,054		(2,872	)
Total fixed maturities		411		268,131		(4,853	)		451		323,102		(7,252	)
Equity securities:
12 months or less		46		36,038		(1,143	)		35		20,698		(983	)
Greater than 12 months		-		-		-			-		-		-
Total equity securities		46		36,038		(1,143	)		35		20,698		(983	)
Total fixed maturity and equity securities		457	$	304,169	$	(5,996	)		486	$	343,800	$	(8,235	)

The fair value and the cost or amortized costs of fixed maturity investments at March 31, 2017, by contractual maturity, are shown below.  Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

	Fair Value		Cost or Amortized Cost
One year or less	$	71,509	$	71,658
Excess of one year to five years		291,246		292,665
Excess of five years to ten years		44,862		44,194
Excess of ten years		4,667		4,612
Contractual maturities		412,284		413,129
Asset-backed securities		96,518		94,823
Total	$	508,802	$	507,952

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Notes to Unaudited Condensed Consolidated Financial Statements (continued)

Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying condensed consolidated statements of income.

	Three Months Ended
	March 31
	2017			2016
Fixed maturities:
Gross gains	$	888		$	1,277
Gross losses		(1,373	)		(2,896	)
Net realized losses		(485	)		(1,619	)
Equity securities:
Gross gains		1,606			15,510
Gross losses		(113	)		(2,700	)
Net realized gains		1,493			12,810
Limited partnerships - net gain (loss)		5,286			(2,179	)
Total net gains	$	6,294		$	9,012

Net realized gains activity for investments, as shown in the previous table, are further detailed as follows:

	Three Months Ended
	March 31
	2017			2016
Realized net gains on the disposal of securities	$	399		$	8,309
Mark-to-market adjustment		(284	)		(301	)
Equity in gains (losses) of limited partnership
investments - realized and unrealized		5,286			(2,179	)
Impairment:
Write-downs based upon objective criteria		-			(2,060	)
Recovery of prior write-downs
upon sale or disposal		893			5,243
Total net gains	$	6,294		$	9,012

The mark-to-market adjustments in the table above represent the changes in fair value of options embedded in convertible debt securities held by the Company.

Shareholders' equity at March 31, 2017 included approximately $28,312, net of federal income taxes, of reported earnings which remain undistributed by limited partnerships.

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Notes to Unaudited Condensed Consolidated Financial Statements (continued)

At March 31, 2017, limited partnership investments included approximately $37,737 invested in two partnerships which are managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners.  Each of these investments contains profit sharing agreements, pursuant to which a portion of the gains will be paid to the affiliated organizations.

At March 31, 2017, the Company's invested assets, excluding limited partnership investments, included approximately $23,531 in portfolios managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners.

(3) Reinsurance:

The following table summarizes the Company's transactions with reinsurers for the 2017 and 2016 comparative periods.

	2017		2016
Three months ended March 31:
Premiums ceded to reinsurers	$	31,308	$	31,263
Losses and loss expenses
ceded to reinsurers		19,474		29,324
Commissions from reinsurers		7,408		9,137

(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the three months ended March 31, 2017 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	2017		2016
Reserves at the beginning of the quarter	$	324,767	$	301,753
Provision for losses and loss expenses:
Claims occurring during the current quarter		48,487		39,861
Claims occurring during prior quarters		112		(1,238	)
Total incurred		48,599
Loss and loss expense payments:
Claims occurring during the current quarter		9,508		7,087
Claims occurring during prior quarters		41,814		35,526
Total paid		51,322		42,613
Reserves at the end of the quarter		322,044		298,296
Reinsurance recoverable on unpaid losses at the end of the quarter		256,797		226,498
Reserves, gross of reinsurance
recoverable, at the end of the quarter	$	578,841	$	524,794

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Notes to Unaudited Condensed Consolidated Financial Statements (continued)

The table above shows that a deficiency of $112 developed during the first three months of 2017 in the settlement of claims occurring on or before December 31, 2016.  This development is composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported as part of the normal reserving process.

(5) Segment Information:

The Company has one reportable business segment in its operations: Property and Casualty Insurance.  The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies as well as to independent contractors who contract with fleet transportation companies.  In addition, the Company provides workers' compensation coverage to small businesses.  Through this segment, the Company offers a range of products and services, the most significant being commercial auto and workers' compensation.

The following table summarizes segment revenues for the three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31
	2017		2016
Revenues:
Net premiums earned	$	73,974	$	66,909
Net investment income		3,692		3,440
Net realized gains on investments		6,294		9,012
Other		981		1,364
Total revenues	$	84,941	$	80,725

(6) Debt:

The Company maintains a revolving line of credit with a $40,000 limit and an expiration date of September 23, 2018.  Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company's option.  Outstanding drawings on this line of credit were $20,000 as of both March 31, 2017 and December 31, 2016.  At March 31, 2017, the effective interest rate was 2.08%.  The Company has $20,000 remaining unused under the line of credit at March 31, 2017.  The current outstanding borrowings were used for general corporate purposes. 

 (7) Taxes:

As of March 31, 2017, the Company's calendar years 2016, 2015 and 2014 remain subject to examination by the IRS.  The effective federal income tax rate differs from the normal statutory rate primarily as a result of tax-exempt investment income.

- 15 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

(8) Fair Value:

Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of March 31, 2017:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	7,446	$	-	$	7,446	$	-
Agency mortgage-backed securities		10,693		-		10,693		-
Asset-backed securities		48,241		-		40,980		7,261
Bank loans		9,144		-		-		9,144
Certificates of deposit		3,119		3,119		-		-
Collateralized mortgage obligations		6,119		-		5,225		894
Corporate securities		177,294		20,025		156,477		792
Options embedded in convertible securities		5,015		-		5,015		-
Mortgage-backed securities		24,019		-		21,772		2,247
Municipal obligations		128,882		-		128,769		113
Non-U.S. government obligations		21,428		-		21,428		-
U.S. government obligations		67,402		-		67,402		-
Total fixed maturities		508,802		23,144		465,207		20,451
Equity securities:
Consumer		41,624		41,624		-		-
Energy		11,025		11,025		-		-
Financial		35,109		35,109		-		-
Industrial		24,147		23,139		1,008		-
Technology		9,518		9,518		-		-
Mutual fund		7,311		3,646		3,665		-
Other		6,780		6,780		-		-
Total equity securities		135,514		130,841		4,673		-
Short term		1,500		1,500		-		-
Cash equivalents		50,719		-		50,719		-
Total	$	696,535	$	155,485	$	520,599	$	20,451

- 16 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

As of December 31, 2016:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	6,171	$	-	$	6,171	$	-
Agency mortgage-backed securities		4,770		-		4,770		-
Asset-backed securities		45,183		-		37,919		7,264
Bank loans		10,349		-		-		10,349
Certificates of deposit		3,117		3,117		-		-
Collateralized mortgage obligations		9,104		-		6,409		2,695
Corporate securities		137,932		-		135,794		2,138
Options embedded in convertible securities		4,751		-		4,751		-
Mortgage-backed securities		24,571		-		22,206		2,365
Municipal obligations		129,335		-		129,190		145
Non-U.S. government obligations		24,681		-		24,419		262
U.S. government obligations		91,940		-		91,940		-
Total fixed maturities		491,904		3,117		463,569		25,218
Equity securities:
Consumer		32,576		32,576		-		-
Energy		12,842		12,842		-		-
Financial		31,186		30,943		243		-
Industrial		21,145		20,262		883		-
Technology		8,858		8,858		-		-
Mutual fund		6,995		-		6,995		-
Other		6,343		6,343		-		-
Total equity securities		119,945		111,824		8,121		-
Short term		1,500		1,500		-		-
Cash equivalents		59,683		-		59,683		-
Total	$	673,032	$	116,441	$	531,373	$	25,218

Level inputs, as defined by the FASB guidance, are as follows:

Level Input:Input Definition:

Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date.

Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date.

- 17 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

The Level 3 assets consist of a portfolio of asset and mortgage-backed securities, bank loans, collateralized mortgage obligations, corporate securities and a limited amount of municipal and foreign government obligations.  The assets are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes.  Transfers into Level 3 during the three months ended March 31, 2017 and 2016 relate to securities previously classified as Level 2.  A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized or unrealized)
included in income		261			(175	)
Purchases		1,069			-
Settlements		(5,602	)		(316	)
Transfers into Level 3		113			-
Transfers out of Level 3		(608	)		-
End of period balance	$	20,451		$	16,302

Quoted market prices are obtained whenever possible.  Where quoted market prices are not available, fair values are estimated using present value or other valuation techniques.  These techniques are significantly affected by the Company's assumptions, including discount rates and estimates of future cash flows.  Potential taxes and other transaction costs have not been considered in estimating fair values.

Transfers between levels, if any, are recorded as of the beginning of the reporting period.  There were no significant transfers of assets between Level 1 and Level 2 during the three months ended March 31, 2017 and 2016.

In addition to the preceding disclosures on assets recorded at fair value in the condensed consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the condensed consolidated balance sheets.

Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as policy reserve liabilities are excluded from the fair value disclosures.  Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value of the Company.  The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument:

Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership's equity.   The underlying assets of the Company's investments in limited partnerships are carried primarily at fair value, and, therefore, the Company's carrying value of limited partnerships approximates fair value.  As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3.

- 18 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

Short-term borrowings: The fair value of the Company's short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to the Company for debt of similar terms and remaining maturities.

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
March 31, 2017
Assets:   Limited partnerships	$	65,739	$	-	$	-	$	65,739	$	65,739
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000
December 31, 2016
Assets:   Limited partnerships		76,469		-		-		76,469		76,469
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000

(9) Restricted Stock:

The Company grants shares of class B restricted stock to the Company's outside directors, in lieu of cash, as their annual retainer compensation.  The shares are distributed on the vesting date, one year following the date of grant, and have had an aggregate total value of $480 and $440 for the 2015 and 2016 annual periods presented, respectively.  The table below provides detail of the stock issuances for 2015 and 2016:

					Value
					Per Share
Effective	Number of Shares		Vesting	Service	on Grant
Date	Issued		Date	Period	Date
5/12/2015		21,252	5/12/2016	7/1/2015 - 6/30/2016	$	22.59
5/10/2016		17,677	5/10/2017	7/1/2016 - 6/30/2017	$	24.89

Compensation expense related to the above stock grants is recognized over the period in which the directors render services.

Effective February 8, 2017, the Company awarded 20,181 shares of Class B restricted stock to certain of the Company's executives under the Company's Restricted Stock Compensation Plan.  The restricted shares represent a portion of the calendar year 2016 compensation to certain executives under the terms of the Company's Executive Incentive Bonus Plan.  The restricted shares will vest over a three-year period from the date of grant and will be distributed solely in the Company's Class B common stock.  The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted.  Each share was valued at $23.80 per share, representing a total value of $480.  Non-vested restricted shares will be forfeited should an executive's employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee.

- 19 -

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

(10) Litigation, Commitments and Contingencies:

In the ordinary, regular and routine course of their business, the Company and its insurance subsidiaries are frequently involved in various matters of litigation relating principally to claims for insurance coverage provided.  No currently pending matter is deemed by management to be material to the Company.

(11) Accumulated Other Comprehensive Income:

The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017:

				Unrealized
				holding gains on
	Foreign			available-for-sale
	Currency			securities			Total
Beginning balance	$	(831	)	$	34,051		$	33,220
Other comprehensive income
before reclassifications		65			5,990			6,055
Amounts reclassified from
accumulated other
comprehensive income		-			(655	)		(655	)
Net current-period other
comprehensive income		65			5,335			5,400
Ending balance	$	(766	)	$	39,386		$	38,620

(12) Other Operating Expenses:

During 2015, the Company entered into a consulting contract with an insurance brokerage firm of which a director of the Company is CEO and a Managing Director.  The consulting contract provides for an annual fee of $300.  The Company also has a brokerage agreement with this entity.  The Company incurred commission expense in connection with insurance policies written in 2017 and 2016 under this brokerage agreement.  Total commission expense for the three months ended March 31, 2017 and 2016 was $155 and $0, respectively.

(13) Subsequent Events:

The Company has evaluated subsequent events for recognition or disclosure in these condensed consolidated financial statements filed on Form 10-Q with the Securities and Exchange Commission and no events have occurred through the filing date of this Form 10-Q which require recognition or disclosure.

- 20 -

ITEM 2  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

              AND RESULTS OF OPERATIONS

The Company specializes in marketing and underwriting insurance for the transportation industry.  Backed by its long history, the Company offers diverse products in the property and casualty insurance market.  The Company operates as one reportable property and casualty insurance segment, offering a range of products and services, the most significant being commercial automobile and workers' compensation insurance products.

The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017.  During 2016 and prior years, the Company had two reportable segments - property and casualty insurance and reinsurance.  The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance.  The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation.

Liquidity and Capital Resources

The primary sources of the Company's liquidity are (1) funds generated from insurance operations, including net investment income, (2) proceeds from the sale of investments, and (3) proceeds from maturing investments.

The Company generally experiences positive cash flow from operations.  Premiums are collected on insurance policies in advance of the disbursement of funds in payment of claims.  Operating costs of the Company's property/casualty insurance subsidiaries, other than loss and loss expense payments and commissions paid to related agency companies, generally average less than one-third of net premiums earned on a consolidated basis, and the remaining amount is available for investment for varying periods of time depending on the type of insurance coverage provided and the timing of the claim payments. Because losses are often settled in periods subsequent to when they are incurred, operating cash flows may, at times, become negative as loss settlements on claim reserves established in prior years exceed current revenues.  The Company's cash flow relating to premiums is significantly affected by reinsurance programs in effect from time-to-time whereby the Company cedes both premium and risk to other insurance and reinsurance companies.  These programs vary significantly among products, and certain contracts call for reinsurance payment patterns which do not coincide with the collection of premiums by the Company from its insureds.

For the first three months of 2017, the Company produced positive cash flow from operations totaling $6.4 million, which compares to positive cash flow from operations of $2.0 million generated during the first three months of 2016.  The increase in cash flow from the 2016 period was mainly due to higher premium volume during the first quarter of 2017.

For several years, the Company's investment philosophy has emphasized the purchase of short-term bonds with superior quality and liquidity.  As flat yield curves have not provided incentive to lengthen maturities in recent years, the Company has continued to maintain its fixed maturity portfolio at short-term levels.  The average contractual life of the Company's fixed maturity and short-term investment portfolio increased slightly to 4.7 years during the first quarter of 2017. The average duration of the Company's fixed maturity portfolio remains much shorter than both the contractual maturity average and the duration of the Company's liabilities.  The Company also remains an active participant in the equity securities market using capital which is in excess of amounts considered necessary to fund current operations.  The long-term horizon for the Company's equity investments allows it to invest in positions where ultimate value, and not short-term market fluctuation, is the primary focus.  Investments made by the Company's domestic property/casualty insurance subsidiaries are regulated by guidelines promulgated by the National Association of Insurance Commissioners, which are designed to provide protection for both policyholders and shareholders.

- 21 -

As a result of the increased cash flow from operations noted above, net cash used in investing activities totaled $3.6 million and $24.4 million for the three months ended March 31, 2017 and 2016, respectively.

Financing activity for the first three months of 2017 consisted solely of the regular cash dividend payments to shareholders of $4.1 million ($.27 per share).  Financing activity for the first three months of 2016 consisted solely of the regular cash dividend payments to shareholders of $4.0 million ($.26 per share).

The Company maintains a revolving line of credit with a $40.0 million limit and an expiration date of September 23, 2018.  Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company's option.  Outstanding drawings on this line of credit were $20.0 million as of both March 31, 2017 and December 31, 2016.  At March 31, 2017, the effective interest rate was 2.08%.  The Company had $20.0 million remaining unused under the line of credit at March 31, 2017.  The Company's revolving line of credit has three financial covenants, each of which were met as of March 31, 2017.  The three financial covenants relate to a minimum GAAP net worth, a minimum Statutory surplus and a minimum A.M. Best rating.

The Company's assets at March 31, 2017 included $52.2 million in investments classified as cash equivalents that were readily convertible to cash without significant market penalty.  An additional $72.0 million of fixed maturity investments will mature within the twelve-month period following March 31, 2017.  The Company believes that these liquid investments, plus the expected cash flow from premium collections, are more than sufficient to provide for projected claim payments and operating cost demands.  In the event competitive conditions produce inadequate premium rates and the Company chooses to further restrict volume, the liquidity of its investment portfolio would permit management to continue to pay claims as settlements are reached without requiring the disposal of investments at a loss, regardless of interest rates in effect at the time.  In addition, the Company's reinsurance program is structured to avoid significant cash outlays that accompany large losses.

Consolidated shareholders' equity is composed largely of GAAP shareholders' equity of the insurance subsidiaries.  As such, there are statutory restrictions on the transfer of substantial portions of this equity to the parent company.  At March 31, 2017, $69.3 million may be transferred by dividend or loan to the parent company during the remainder of 2017 without approval by, or prior notification to, regulatory authorities.  An additional $248.2 million of shareholder's equity of the Company's insurance subsidiaries could, theoretically, be advanced or loaned to the parent company with prior notification to, and approval from, regulatory authorities, although transfers of this size would not be practical.  The Company believes that these restrictions pose no material liquidity concerns to the Company.  The Company also believes that the financial strength and stability of the Company's insurance subsidiaries would permit access by the parent company to short-term and long-term sources of credit when needed.  The parent company had cash and marketable securities valued at $18.2 million at March 31, 2017.

- 22 -

Net premiums written by the Company's insurance subsidiaries for the first three months of 2017 equaled approximately 77% of the combined statutory surplus of these subsidiaries, a level consistent with the past several years.  Premium writings of up to 100% and in some cases up to 200% of surplus are generally considered acceptable by regulatory authorities.  Further, the statutory capital of each of the Company's insurance subsidiaries substantially exceeded minimum risk based capital requirements set by the National Association of Insurance Commissioners as of March 31, 2017.  Accordingly, the Company has the ability to significantly increase its business without seeking additional capital to meet regulatory guidelines.

Results of Operations

Comparison of First Quarter 2017 to First Quarter 2016

The following table provides information regarding premiums written and earned for the quarters ended March 31 (dollars in thousands):

	2017		2016
Gross Premiums Written	$	110,028	$	96,153
Net Premiums Written		77,530		64,565
Net Premiums Earned		73,974		66,909

Gross premiums written during the first quarter of 2017 increased $13.9 million (14.4%), while net premiums earned increased $7.1 million (10.6%), as compared to the same period of 2016.  The higher premiums were due to increases in both commercial automobile and workers' compensation products.  The difference in the percentage change for premiums written compared to earned is reflective of the normal differences in the financial statement recognition of earned premiums compared to written, as well as differences in reinsurance ceding rates on the mix of business in-force.

Premiums ceded to reinsurers on the Company's insurance business averaged 29.6% of gross premiums written for the first quarter of 2017 compared to 33.9% in the 2016 first quarter, with the decrease attributable principally to the mix of premiums associated with various reinsurance treaties.

Net investment income, before tax, during the first quarter of 2017 was 7.3% higher than the first quarter of 2016 due primarily to increased pre-tax yields on the Company's fixed maturity securities resulting in redeployment of assets to higher yielding issues, as well as a 3.6% increase in average funds invested resulting from positive cash flow.  After-tax investment income increased by 7.9% during the first quarter of 2017 compared to the 2016 first quarter, reflecting the mix between taxable and tax-exempt investment income.

- 23 -

The first quarter 2017 net realized investment gains of $6.3 million resulted primarily from $5.3 million in gains from the Company's investments in limited partnerships and $0.4 million in gains from direct trading activities.  Comparative first quarter 2016 net realized investment gains were $9.0 million, consisting primarily of $8.3 million in gains reported from direct trading activities (net of impairment write-downs of $2.1 million and impairment recoveries of $5.2 million) and $2.9 million in net gains from impairment allowances and mark-to-market adjustments, partially offset by $2.2 million in realized losses from the Company's investments in limited partnerships.  Realized investment gains and losses result from decisions regarding overall portfolio realignment as well as the sale of individual securities, including the change in aggregate value of limited partnerships and, as such, should not be expected to be consistent from period to period.

Losses and loss expenses incurred during the first quarter of 2017 increased $10.0 million (25.8%) compared to the 2016 first quarter, resulting in a loss ratio of 65.7%, compared to a loss ratio of 57.7% during the first quarter of 2016.  The year-over-year increase in losses and loss expenses and in the loss ratio reflected both unusually favorable loss experience in the Company's fleet transportation products during the first quarter of 2016 and unfavorable loss experience during the first quarter of 2017 due in part to a severe charter bus loss.

Other operating expenses for the first quarter of 2017 increased $5.5 million, or 26.6%, from the first quarter of 2016.  The ratio of consolidated other operating expenses to net premiums earned plus net investment income plus commissions and other income (collectively, "operating revenue") was 33.3% during the first quarter of 2017 compared to 28.8% for the 2016 first quarter.

The effective federal tax rate on consolidated income for the first quarter of 2017 was 33.6% compared to 34.2% for the 2016 first quarter.  The effective rate differs from the normal statutory rate primarily as a result of tax-exempt investment income.

As a result of the factors mentioned above, and primarily the increase in losses and loss expenses incurred, net income decreased $7.4 million during the first quarter of 2017 as compared to the 2016 first quarter.

- 24 -

Forward-Looking Information

Any forward-looking statements in this report, including without limitation, statements relating to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, 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 are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.  These risks and uncertainties include without limitation the following:  (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company;  (ii) the Company's business is highly competitive and the entrance of new competitors into or the expansion of the operations by existing competitors in the Company's markets and other changes in the market for insurance products could adversely affect the Company's plans and results of operations;  (iii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission including, but not limited to, those risks set forth in Part I, Item 1A, Risk Factors, in the Company's Annual Report on Form 10-K for the year ended December 31, 2016; and (iv) other risks and factors which may be beyond the control or foresight of the Company.  Readers of this report are cautioned not to place undue reliance on these forward-looking statements. While the Company believes the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. The Company expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Critical Accounting Policies

There have been no changes in the Company's critical accounting policies as disclosed in the Company's Annual Report on Form 10-K filed for the year ended December 31, 2016.

Concentrations of Credit Risk

The Company's insurance subsidiaries cede portions of their gross premiums to numerous reinsurers under quota share and excess of loss treaties as well as facultative placements.  These reinsurers assume commensurate portions of the risk of loss covered by the contracts.  As losses are reported and reserved, portions of the gross losses attributable to reinsurers are established as receivable assets and losses incurred are reduced.  At March 31, 2017, amounts due from reinsurers on paid and unpaid losses are estimated to total approximately $257 million.  Because of the large policy limits reinsured by the Company, the ultimate amount of incurred but not reported losses and loss adjustment expenses attributable to reinsurers could vary significantly from the estimate provided; however, absent the inability to collect from reinsurers, such variance would not result in changes in net claim losses incurred by the Company.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

- 25 -

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company's exposure to market risk since the disclosure in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

ITEM 4. CONTROLS AND PROCEDURES

The Company carried out an evaluation as of March 31, 2017, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures as defined in Rule 13a-15(e) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or the "Exchange Act". Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective in ensuring that information required to be disclosed in reports that the Company files or submits under the Exchange Act is (a) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms; and (b) accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. The Company noted no change in its internal control over financial reporting that occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS

In addition to the information set forth in this Quarterly Report on Form 10-Q and before deciding to invest in, or retain, shares of the Company's common stock, you also should carefully review and consider the information contained in the Company's other reports and periodic filings that it makes with the Securities and Exchange Commission, including, without limitation, the information contained under the caption Part I, Item 1A "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2016. Those risk factors could materially affect the Company's business, financial condition and results of operations. There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

- 26 -

ITEM 6 (a)  EXHIBITS

Number and caption from Exhibit

Table of Regulation S-K Item 601Exhibit No.

(31.1)Certification of CEO       EXHIBIT 31.1

          pursuant to Section 302 of theCertification of CEO

          Sarbanes-Oxley Act of 2002

(31.2)Certification of CFO      EXHIBIT 31.2

          pursuant to Section 302 of theCertification of CFO

          Sarbanes-Oxley Act of 2002

(32)Certification of CEO and CFO                                                                                                         EXHIBIT 32

       pursuant to 18 U.S.C. 1350, asCertification of CEO

       adopted pursuant to Section 906and CFO

       of the Sarbanes-Oxley Act of 2002

(101) The following materials from Baldwin & Lyons, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Income, (3) the Consolidated Statements of Comprehensive Income, (4) the Consolidated Statements of Cash Flows, and (5) the Notes to Unaudited Condensed Consolidated Financial Statements.

- 27 -

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 thereunto duly authorized.

 BALDWIN & LYONS, INC.

Date    May 10, 2017

                                                                                            By /s/ W. Randall Birchfield

            W. Randall Birchfield,

     Chief Executive Officer & President

Date    May 10, 2017

                                                                                             By /s/ William C. Vens

                                                                                                         William C. Vens,

                                                                                                            Chief Financial Officer

- 28 -

INDEX TO EXHIBITS

Exhibit Number

EXHIBIT 31.1

Certification of CEO

pursuant to Section 302 of the

Sarbanes-Oxley Act

EXHIBIT 31.2

Certification of CFO

pursuant to Section 302 of the

Sarbanes-Oxley Act

EXHIBIT 32

Certification of CEO and CFO

pursuant to 18 U.S.C. 1350,

as adopted pursuant to Section

906 of the Sarbanes-Oxley Act

EXHIBIT 101

The following materials from Baldwin & Lyons, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Income, (3) the Consolidated Statements of Comprehensive Income, (4) the Consolidated Statements of Cash Flows, and (5) the Notes to Unaudited Condensed Consolidated Financial Statements.

- 29 -

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, W. Randall Birchfield, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Baldwin & Lyons, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the  effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 10, 2017

/s/ W. Randall Birchfield

W. Randall Birchfield, Chief Executive Officer & President

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, William C. Vens, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Baldwin & Lyons, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 10, 2017

/s/ William C. Vens

William C. Vens,Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Baldwin & Lyons, Inc. (the "Company") on Form 10-Q for the quarterly period ending March 31, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, W. Randall Birchfield, Chief Executive Officer & President, and William C. Vens, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2017

/s/ W. Randall Birchfield

W. Randall Birchfield,

Chief Executive Officer & President

/s/ William C. Vens

William C. Vens,

Chief Financial Officer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	BALDWIN & LYONS INC
Entity Central Index Key	0000009346
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Information [Line Items]
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Class A (voting) [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		2,623,109
Class B (nonvoting) [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,481,081

XML

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Investments:
Fixed maturities	$ 508,802	$ 491,904
Equity securities	135,514	119,945
Limited partnerships	65,739	76,469
Short-term and other	1,500	1,500
Total Investments	711,555	689,818
Cash and cash equivalents	61,761	62,976
Accounts receivable	67,303	64,984
Reinsurance recoverable	262,423	255,024
Other assets	75,148	78,732
Current federal income taxes recoverable	0	2,603
Total Assets	1,178,190	1,154,137
Liabilities and shareholders' equity
Reserves for losses and loss expenses	578,841	576,330
Reserves for unearned premiums	25,968	21,694
Short-term borrowings	20,000	20,000
Accounts payable and other liabilities	125,375	120,356
Current federal income taxes	946	0
Deferred federal income taxes	14,158	11,412
Total Liabilities	765,288	749,792
Shareholders' equity:
Additional paid-in capital	54,766	54,286
Unrealized net gains on investments	39,386	34,051
Foreign exchange adjustment	(766)	(831)
Retained earnings	318,871	316,195
Shareholders' equity	412,902	404,345
Total liabilities and shareholders' equity	1,178,190	1,154,137
Class A Voting [Member]
Shareholders' equity:
Common stock	112	112
Class B Non-voting [Member]
Shareholders' equity:
Common stock	$ 533	$ 532

XML

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Class A Voting [Member]
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares outstanding (in shares)	2,623,109	2,623,109
Class B Non-voting [Member]
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	12,481,081	12,460,900

XML

Unaudited Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Net premiums earned	$ 73,974	$ 66,909
Net investment income	3,692	3,440
Commissions and other income	981	1,364
Net realized gains on investments	6,294	11,072
Total other-than-temporary impairment losses on investments	0	(2,060)
Net realized gains on investments	6,294	9,012
Total revenues	84,941	80,725
Expenses
Losses and loss expenses incurred	48,599	38,623
Other operating expenses	26,164	20,664
Total expenses	74,763	59,287
Income before federal income taxes	10,178	21,438
Federal income taxes	3,422	7,326
Net income	$ 6,756	$ 14,112
Per share data:
Basic and diluted earnings (in dollars per share)	$ 0.45	$ 0.94
Dividends paid to shareholders (in dollars per share)	$ 0.27	$ 0.26
Reconciliation of shares outstanding:
Average shares outstanding - basic (in shares)	15,096	15,044
Dilutive effect of share equivalents (in shares)	8	32
Average shares outstanding - diluted (in shares)	15,104	15,076

XML

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 6,756	$ 14,112
Unrealized net gains (losses) on securities:
Unrealized net gains (losses) arising during the period	5,990	(775)
Less: reclassification adjustment for net gains (losses) included in net income	655	7,275
Change in unrealized gains (losses) on investments	5,335	(8,050)
Foreign currency translation adjustments	65	419
Other comprehensive income (loss)	5,400	(7,631)
Comprehensive income	$ 12,156	$ 6,481

XML

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Unaudited Consolidated Statements of Cash Flows [Abstract]
Net cash provided by operating activities	$ 6,398	$ 1,973
Investing activities:
Purchases of available-for-sale investments	(115,947)	(112,301)
Proceeds from sales or maturities of available-for-sale investments	105,282	89,042
Net (purchases) sales of short-term investments	(7,290)	5
Other investing activities	14,357	(1,154)
Net cash used in investing activities	(3,598)	(24,408)
Financing activities:
Dividends paid to shareholders	(4,080)	(3,977)
Net cash used in financing activities	(4,080)	(3,977)
Effect of Foreign exchange rates on cash and cash equivalents	65	419
Decrease in cash and cash equivalents	(1,215)	(25,993)
Cash and cash equivalents at beginning of period	62,976	73,538
Cash and cash equivalents at end of period	$ 61,761	$ 47,545

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Description of Business:  Baldwin & Lyons, Inc. (the "Company"), based in Carmel, Indiana, is a specialty property-casualty insurer providing liability coverage for large to small-sized trucking and public transportation fleets.   The Company operates as one reportable property and casualty insurance segment, offering a range of products and services, the most significant being commercial automobile and workers' compensation insurance products.

The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017.  During 2016 and prior years, the Company had two reportable segments – property and casualty insurance and reinsurance.  The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance.  The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.  Interim financial statements should be read in conjunction with the Company's annual audited financial statements and other disclosures included in the Company's most recent Annual Report on Form 10-K.  Operating results for interim periods are not necessarily indicative of results that may be expected for the year ended December 31, 2017.

Investments:  Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available.  Equity securities are carried at quoted market prices (fair value).  The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income.  To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of income, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses.

Short-term and other investments are carried at cost, which approximates their fair values.

Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of cost of investments sold and are included in income.  All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders' equity.  Included within available for sale fixed maturity securities are convertible debt securities.  The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses) on investments.

In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the condensed consolidated statements of operations.   For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the condensed consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders' equity (accumulated other comprehensive income).

The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security.  The net present value is calculated by discounting the Company's best estimate of projected future cash flows at the appropriate effective interest rate.

The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders' equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income.  In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost.   For any equity security where the unrealized loss exceeds a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment.  For any equity security where the decline has existed for a period of at least one year, the decline is treated as an other-than-temporary impairment.  Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration of the Company's quantitative criteria defined above, as well as the Company's intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value.

Recent Accounting Pronouncements: In January 2016, the FASB issued Accounting Standards Update “ASU” 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income. Under current guidance, changes in fair value for investments of this nature are recognized in accumulated other comprehensive income as a component of shareholders’ equity. Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. The Company has not yet evaluated the impact of this guidance.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects that adoption of ASU 2016-13 will have on its consolidated financial statements, results of operations and cash flows.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04.  This amendment removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation.  The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value.  ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

XML

Investments

3 Months Ended

Mar. 31, 2017

Investments [Abstract]

Investments

(2) Investments:

The following is a summary of available-for-sale securities at March 31, 2017 and December 31, 2016:

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
March 31, 2017
Fixed maturities
Agency collateralized mortgage obligations	$	7,446	$	7,065	$	381	$	-		$	381
Agency mortgage-backed securities		10,693		10,683		54		(44	)		10
Asset-backed securities		48,241		47,306		1,015		(80	)		935
Bank loans		9,144		9,041		120		(17	)		103
Certificates of deposit		3,119		3,125		-		(6	)		(6	)
Collateralized mortgage obligations		6,119		6,034		262		(177	)		85
Corporate securities		182,308		181,917		2,056		(1,665	)		391
Mortgage-backed securities		24,019		23,735		880		(596	)		284
Municipal obligations		128,883		128,818		621		(556	)		65
Non-U.S. government obligations		21,428		22,545		254		(1,371	)		(1,117	)
U.S. government obligations		67,402		67,683		60		(341	)		(281	)
Total fixed maturities		508,802		507,952		5,703		(4,853	)		850
Equity securities:
Consumer		41,624		21,194		20,825		(395	)		20,430
Energy		11,025		5,552		5,514		(41	)		5,473
Financial		35,109		25,836		9,522		(249	)		9,273
Industrial		24,147		7,981		16,336		(170	)		16,166
Technology		9,518		3,933		5,585		-			5,585
Mutual fund		7,311		6,930		472		(91	)		381
Other		6,780		4,344		2,633		(197	)		2,436
Total equity securities		135,514		75,770		60,887		(1,143	)		59,744
Total	$	644,316	$	583,722	$	66,590	$	(5,996	)		60,594
							Applicable federal income taxes				(21,208	)
							Net unrealized gains - net of tax			$	39,386

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
December 31, 2016
Fixed maturities
Agency collateralized mortgage obligations	$	6,171	$	6,000	$	171	$	-		$	171
Agency mortgage-backed securities		4,770		4,751		57		(38	)		19
Asset-backed securities		45,183		45,207		458		(482	)		(24	)
Bank loans		10,349		10,222		149		(22	)		127
Certificates of deposit		3,117		3,126		-		(9	)		(9	)
Collateralized mortgage obligations		9,104		9,096		290		(282	)		8
Corporate securities		142,683		143,356		1,643		(2,316	)		(673	)
Mortgage-backed securities		24,571		23,904		1,132		(465	)		667
Municipal obligations		129,335		130,204		391		(1,260	)		(869	)
Non-U.S. government obligations		24,681		26,461		230		(2,010	)		(1,780	)
U.S. government obligations		91,940		92,234		74		(368	)		(294	)
Total fixed maturities		491,904		494,561		4,595		(7,252	)		(2,657	)
Equity securities:
Consumer		32,576		15,231		17,656		(311	)		17,345
Energy		12,842		5,641		7,203		(2	)		7,201
Financial		31,186		22,417		8,998		(229	)		8,769
Industrial		21,145		6,239		15,098		(192	)		14,906
Technology		8,858		4,117		4,769		(28	)		4,741
Mutual fund		6,995		6,930		121		(56	)		65
Other		6,343		4,327		2,181		(165	)		2,016
Total equity securities		119,945		64,902		56,026		(983	)		55,043
Total	$	611,849	$	559,463	$	60,621	$	(8,235	)		52,386
							Applicable federal income taxes				(18,335	)
							Net unrealized gains - net of tax			$	34,051

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at March 31, 2017 and December 31, 2016, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position.

	March 31, 2017							December 31, 2016
	Number of Securities		Fair Value		Gross Unrealized Loss			Number of Securities		Fair Value		Gross Unrealized Loss
Fixed maturity securities:
12 months or less		375	$	258,128	$	(3,133	)		397	$	291,048	$	(4,380	)
Greater than 12 months		36		10,003		(1,720	)		54		32,054		(2,872	)
Total fixed maturities		411		268,131		(4,853	)		451		323,102		(7,252	)
Equity securities:
12 months or less		46		36,038		(1,143	)		35		20,698		(983	)
Greater than 12 months		-		-		-			-		-		-
Total equity securities		46		36,038		(1,143	)		35		20,698		(983	)
Total fixed maturity and equity securities		457	$	304,169	$	(5,996	)		486	$	343,800	$	(8,235	)

The fair value and the cost or amortized costs of fixed maturity investments at March 31, 2017, by contractual maturity, are shown below.  Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

	Fair Value		Cost or Amortized Cost
One year or less	$	71,509	$	71,658
Excess of one year to five years		291,246		292,665
Excess of five years to ten years		44,862		44,194
Excess of ten years		4,667		4,612
Contractual maturities		412,284		413,129
Asset-backed securities		96,518		94,823
Total	$	508,802	$	507,952

Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying condensed consolidated statements of income.

	Three Months Ended
	March 31
	2017			2016
Fixed maturities:
Gross gains	$	888		$	1,277
Gross losses		(1,373	)		(2,896	)
Net realized losses		(485	)		(1,619	)
Equity securities:
Gross gains		1,606			15,510
Gross losses		(113	)		(2,700	)
Net realized gains		1,493			12,810
Limited partnerships - net gain (loss)		5,286			(2,179	)
Total net gains	$	6,294		$	9,012

Net realized gains activity for investments, as shown in the previous table, are further detailed as follows:

	Three Months Ended
	March 31
	2017			2016
Realized net gains on the disposal of securities	$	399		$	8,309
Mark-to-market adjustment		(284	)		(301	)
Equity in gains (losses) of limited partnership
investments - realized and unrealized		5,286			(2,179	)
Impairment:
Write-downs based upon objective criteria		-			(2,060	)
Recovery of prior write-downs
upon sale or disposal		893			5,243
Total net gains	$	6,294		$	9,012

The mark-to-market adjustments in the table above represent the changes in fair value of options embedded in convertible debt securities held by the Company.

Shareholders' equity at March 31, 2017 included approximately $28,312, net of federal income taxes, of reported earnings which remain undistributed by limited partnerships.

At March 31, 2017, limited partnership investments included approximately $37,737 invested in two partnerships which are managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners.  Each of these investments contains profit sharing agreements, pursuant to which a portion of the gains will be paid to the affiliated organizations.

At March 31, 2017, the Company's invested assets, excluding limited partnership investments, included approximately $23,531 in portfolios managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners.

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Reinsurance

3 Months Ended

Mar. 31, 2017

Reinsurance [Abstract]

Reinsurance

(3) Reinsurance:

The following table summarizes the Company's transactions with reinsurers for the 2017 and 2016 comparative periods.

	2017		2016
Three months ended March 31:
Premiums ceded to reinsurers	$	31,308	$	31,263
Losses and loss expenses
ceded to reinsurers		19,474		29,324
Commissions from reinsurers		7,408		9,137

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Loss and Loss Expense Reserves

3 Months Ended

Mar. 31, 2017

Loss and Loss Expense Reserves [Abstract]

Loss and Loss Expense Reserves

(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the three months ended March 31 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	2017		2016
Reserves at the beginning of the quarter	$	324,767	$	301,753
Provision for losses and loss expenses:
Claims occurring during the current quarter		48,487		39,861
Claims occurring during prior quarters		112		(1,238	)
Total incurred		48,599		38,623
Loss and loss expense payments:
Claims occurring during the current quarter		9,508		7,087
Claims occurring during prior quarters		41,814		35,526
Total paid		51,322		42,613
Reserves at the end of the quarter		322,044		298,296
Reinsurance recoverable on unpaid losses at the end of the quarter		256,797		226,498
Reserves, gross of reinsurance
recoverable, at the end of the quarter	$	578,841	$	524,794

The table above shows that a deficiency of $112 developed during the first three months of 2017 in the settlement of claims occurring on or before December 31, 2016.  This development is composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported as part of the normal reserving process.

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Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information

(5) Segment Information:

The Company has one reportable business segment in its operations: Property and Casualty Insurance.  The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies as well as to independent contractors who contract with fleet transportation companies.  In addition, the Company provides workers' compensation coverage to small businesses.  Through this segment, the Company offers a range of products and services, the most significant being commercial auto and workers' compensation.

The following table summarizes segment revenues for the three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31
	2017		2016
Revenues:
Net premiums earned	$	73,974	$	66,909
Net investment income		3,692		3,440
Net realized gains on investments		6,294		9,012
Other		981		1,364
Total revenues	$	84,941	$	80,725

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Debt

3 Months Ended

Mar. 31, 2017

Debt [Abstract]

Debt

(6) Debt:

The Company maintains a revolving line of credit with a $40,000 limit and an expiration date of September 23, 2018.  Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company's option.  Outstanding drawings on this line of credit were $20,000 as of both March 31, 2017 and December 31, 2016.  At March 31, 2017, the effective interest rate was 2.08%.  The Company has $20,000 remaining unused under the line of credit at March 31, 2017.  The current outstanding borrowings were used for general corporate purposes. 

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Taxes

3 Months Ended

Mar. 31, 2017

Taxes [Abstract]

Taxes

(7)Taxes:

As of March 31, 2017, the Company's calendar years 2016, 2015 and 2014 remain subject to examination by the IRS.  The effective federal income tax rate differs from the normal statutory rate primarily as a result of tax-exempt investment income.

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Fair Value

3 Months Ended

Mar. 31, 2017

Fair Value [Abstract]

Fair Value

(8) Fair Value:

Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of March 31, 2017:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	7,446	$	-	$	7,446	$	-
Agency mortgage-backed securities		10,693		-		10,693		-
Asset-backed securities		48,241		-		40,980		7,261
Bank loans		9,144		-		-		9,144
Certificates of deposit		3,119		3,119		-		-
Collateralized mortgage obligations		6,119		-		5,225		894
Corporate securities		177,294		20,025		156,477		792
Options embedded in convertible securities		5,015		-		5,015		-
Mortgage-backed securities		24,019		-		21,772		2,247
Municipal obligations		128,882		-		128,769		113
Non-U.S. government obligations		21,428		-		21,428		-
U.S. government obligations		67,402		-		67,402		-
Total fixed maturities		508,802		23,144		465,207		20,451
Equity securities:
Consumer		41,624		41,624		-		-
Energy		11,025		11,025		-		-
Financial		35,109		35,109		-		-
Industrial		24,147		23,139		1,008		-
Technology		9,518		9,518		-		-
Mutual fund		7,311		3,646		3,665		-
Other		6,780		6,780		-		-
Total equity securities		135,514		130,841		4,673		-
Short term		1,500		1,500		-		-
Cash equivalents		50,719		-		50,719		-
Total	$	696,535	$	155,485	$	520,599	$	20,451

As of December 31, 2016:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	6,171	$	-	$	6,171	$	-
Agency mortgage-backed securities		4,770		-		4,770		-
Asset-backed securities		45,183		-		37,919		7,264
Bank loans		10,349		-		-		10,349
Certificates of deposit		3,117		3,117		-		-
Collateralized mortgage obligations		9,104		-		6,409		2,695
Corporate securities		137,932		-		135,794		2,138
Options embedded in convertible securities		4,751		-		4,751		-
Mortgage-backed securities		24,571		-		22,206		2,365
Municipal obligations		129,335		-		129,190		145
Non-U.S. government obligations		24,681		-		24,419		262
U.S. government obligations		91,940		-		91,940		-
Total fixed maturities		491,904		3,117		463,569		25,218
Equity securities:
Consumer		32,576		32,576		-		-
Energy		12,842		12,842		-		-
Financial		31,186		30,943		243		-
Industrial		21,145		20,262		883		-
Technology		8,858		8,858		-		-
Mutual fund		6,995		-		6,995		-
Other		6,343		6,343		-		-
Total equity securities		119,945		111,824		8,121		-
Short term		1,500		1,500		-		-
Cash equivalents		59,683		-		59,683		-
Total	$	673,032	$	116,441	$	531,373	$	25,218

Level inputs, as defined by the FASB guidance, are as follows:

Level Input:Input Definition:

Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.

Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date.

Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date.

The Level 3 assets consist of a portfolio of asset and mortgage-backed securities, bank loans, collateralized mortgage obligations, corporate securities and a limited amount of municipal and foreign government obligations.  The assets are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes.  Transfers into Level 3 during the three months ended March 31, 2017 and 2016 relate to securities previously classified as Level 2.  A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized or unrealized)
included in income		261			(175	)
Purchases		1,069			-
Settlements		(5,602	)		(316	)
Transfers into Level 3		113			-
Transfers out of Level 3		(608	)		-
End of period balance	$	20,451		$	16,302

Quoted market prices are obtained whenever possible.  Where quoted market prices are not available, fair values are estimated using present value or other valuation techniques.  These techniques are significantly affected by the Company's assumptions, including discount rates and estimates of future cash flows.  Potential taxes and other transaction costs have not been considered in estimating fair values.

Transfers between levels, if any, are recorded as of the beginning of the reporting period.  There were no significant transfers of assets between Level 1 and Level 2 during the three months ended March 31, 2017 and 2016.

In addition to the preceding disclosures on assets recorded at fair value in the condensed consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the condensed consolidated balance sheets.

Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as policy reserve liabilities are excluded from the fair value disclosures.  Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value of the Company.  The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument:

Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership's equity.   The underlying assets of the Company's investments in limited partnerships are carried primarily at fair value, and, therefore, the Company's carrying value of limited partnerships approximates fair value.  As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3.

Short-term borrowings: The fair value of the Company's short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to the Company for debt of similar terms and remaining maturities.

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
March 31, 2017
Assets:   Limited partnerships	$	65,739	$	-	$	-	$	65,739	$	65,739
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000
December 31, 2016
Assets:   Limited partnerships		76,469		-		-		76,469		76,469
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000

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Restricted Stock

3 Months Ended

Mar. 31, 2017

Restricted Stock [Abstract]

Restricted Stock

(9) Restricted Stock:

The Company grants shares of class B restricted stock to the Company's outside directors, in lieu of cash, as their annual retainer compensation.  The shares are distributed on the vesting date, one year following the date of grant, and have had an aggregate total value of $480 and $440 for the 2015 and 2016 annual periods presented, respectively.  The table below provides detail of the stock issuances for 2015 and 2016:

					Value
					Per Share
Effective	Number of Shares		Vesting	Service	on Grant
Date	Issued		Date	Period	Date
5/12/2015		21,252	5/12/2016	7/1/2015 - 6/30/2016	$	22.59
5/10/2016		17,677	5/10/2017	7/1/2016 - 6/30/2017	$	24.89

Compensation expense related to the above stock grants is recognized over the period in which the directors render services.

Effective February 8, 2017, the Company awarded 20,181 shares of Class B restricted stock to certain of the Company's executives under the company's Restricted Stock Compensation Plan.  The restricted shares represent a portion of the calendar year 2016 compensation to certain executives under the terms of the Company's Executive Incentive Bonus Plan.  The restricted shares will vest over a three-year period from the date of grant and will be distributed solely in the Company's Class B common stock.  The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted.  Each share was valued at $23.80 per share, representing a total value of $480.  Non-vested restricted shares will be forfeited should an executive's employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee.

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Litigation, Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Litigation, Commitments and Contingencies [Abstract]

Litigation, Commitments and Contingencies

(10) Litigation, Commitments and Contingencies:

In the ordinary, regular and routine course of their business, the Company and its insurance subsidiaries are frequently involved in various matters of litigation relating principally to claims for insurance coverage provided.  No currently pending matter is deemed by management to be material to the Company.

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Accumulated Other Comprehensive Income

3 Months Ended

Mar. 31, 2017

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

(11) Accumulated Other Comprehensive Income:

The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017:

				Unrealized
				holding gains on
	Foreign			available-for-sale
	Currency			securities			Total
Beginning balance	$	(831	)	$	34,051		$	33,220
Other comprehensive income
before reclassifications		65			5,990			6,055
Amounts reclassified from
accumulated other
comprehensive income		-			(655	)		(655	)
Net current-period other
comprehensive income		65			5,335			5,400
Ending balance	$	(766	)	$	39,386		$	38,620

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Other Operating Expenses

3 Months Ended

Mar. 31, 2017

Other Operating Expenses [Abstract]

Other Operating Expenses

(12) Other Operating Expenses:

During 2015, the Company entered into a consulting contract with an insurance brokerage firm of which a director of the Company is CEO and a Managing Director.  The consulting contract provides for an annual fee of $300.  The Company also has a brokerage agreement with this entity.  The Company incurred commission expense in connection with insurance policies written in 2017 and 2016 under this brokerage agreement.  Total commission expense for the three months ended March 31, 2017 and 2016 was $155 and $0, respectively.

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Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

(13) Subsequent Events:

The Company has evaluated subsequent events for recognition or disclosure in these condensed consolidated financial statements filed on Form 10-Q with the Securities and Exchange Commission and no events have occurred through the filing date of this Form 10-Q which require recognition or disclosure.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Summary of Significant Accounting Policies [Abstract]

Description of Business

Description of Business:  Baldwin & Lyons, Inc. (the "Company"), based in Carmel, Indiana, is a specialty property-casualty insurer providing liability coverage for large to small-sized trucking and public transportation fleets.   The Company operates as one reportable property and casualty insurance segment, offering a range of products and services, the most significant being commercial automobile and workers' compensation insurance products.

The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017.  During 2016 and prior years, the Company had two reportable segments – property and casualty insurance and reinsurance.  The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance.  The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation.

Basis of Presentation

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included.  Interim financial statements should be read in conjunction with the Company's annual audited financial statements and other disclosures included in the Company's most recent Annual Report on Form 10-K.  Operating results for interim periods are not necessarily indicative of results that may be expected for the year ended December 31, 2017.

Investments:  Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available.  Equity securities are carried at quoted market prices (fair value).  The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income.  To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of income, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses.

Investments

Short-term and other investments are carried at cost, which approximates their fair values.

Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of cost of investments sold and are included in income.  All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders' equity.  Included within available for sale fixed maturity securities are convertible debt securities.  The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses) on investments.

In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the condensed consolidated statements of operations.   For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the condensed consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders' equity (accumulated other comprehensive income).

The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security.  The net present value is calculated by discounting the Company's best estimate of projected future cash flows at the appropriate effective interest rate.

The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders' equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income.  In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost.   For any equity security where the unrealized loss exceeds a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment.  For any equity security where the decline has existed for a period of at least one year, the decline is treated as an other-than-temporary impairment.  Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration of the Company's quantitative criteria defined above, as well as the Company's intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value.

Recent Accounting Pronouncements

Recent Accounting Pronouncements: In January 2016, the FASB issued Accounting Standards Update “ASU” 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income. Under current guidance, changes in fair value for investments of this nature are recognized in accumulated other comprehensive income as a component of shareholders’ equity. Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. The Company has not yet evaluated the impact of this guidance.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects that adoption of ASU 2016-13 will have on its consolidated financial statements, results of operations and cash flows.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04.  This amendment removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation.  The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value.  ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted.  The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity.

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Investments (Tables)

3 Months Ended

Mar. 31, 2017

Investments [Abstract]

Summary of available for sale securities

The following is a summary of available-for-sale securities at March 31, 2017 and December 31, 2016:

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
March 31, 2017
Fixed maturities
Agency collateralized mortgage obligations	$	7,446	$	7,065	$	381	$	-		$	381
Agency mortgage-backed securities		10,693		10,683		54		(44	)		10
Asset-backed securities		48,241		47,306		1,015		(80	)		935
Bank loans		9,144		9,041		120		(17	)		103
Certificates of deposit		3,119		3,125		-		(6	)		(6	)
Collateralized mortgage obligations		6,119		6,034		262		(177	)		85
Corporate securities		182,308		181,917		2,056		(1,665	)		391
Mortgage-backed securities		24,019		23,735		880		(596	)		284
Municipal obligations		128,883		128,818		621		(556	)		65
Non-U.S. government obligations		21,428		22,545		254		(1,371	)		(1,117	)
U.S. government obligations		67,402		67,683		60		(341	)		(281	)
Total fixed maturities		508,802		507,952		5,703		(4,853	)		850
Equity securities:
Consumer		41,624		21,194		20,825		(395	)		20,430
Energy		11,025		5,552		5,514		(41	)		5,473
Financial		35,109		25,836		9,522		(249	)		9,273
Industrial		24,147		7,981		16,336		(170	)		16,166
Technology		9,518		3,933		5,585		-			5,585
Mutual fund		7,311		6,930		472		(91	)		381
Other		6,780		4,344		2,633		(197	)		2,436
Total equity securities		135,514		75,770		60,887		(1,143	)		59,744
Total	$	644,316	$	583,722	$	66,590	$	(5,996	)		60,594
							Applicable federal income taxes				(21,208	)
							Net unrealized gains - net of tax			$	39,386

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
December 31, 2016
Fixed maturities
Agency collateralized mortgage obligations	$	6,171	$	6,000	$	171	$	-		$	171
Agency mortgage-backed securities		4,770		4,751		57		(38	)		19
Asset-backed securities		45,183		45,207		458		(482	)		(24	)
Bank loans		10,349		10,222		149		(22	)		127
Certificates of deposit		3,117		3,126		-		(9	)		(9	)
Collateralized mortgage obligations		9,104		9,096		290		(282	)		8
Corporate securities		142,683		143,356		1,643		(2,316	)		(673	)
Mortgage-backed securities		24,571		23,904		1,132		(465	)		667
Municipal obligations		129,335		130,204		391		(1,260	)		(869	)
Non-U.S. government obligations		24,681		26,461		230		(2,010	)		(1,780	)
U.S. government obligations		91,940		92,234		74		(368	)		(294	)
Total fixed maturities		491,904		494,561		4,595		(7,252	)		(2,657	)
Equity securities:
Consumer		32,576		15,231		17,656		(311	)		17,345
Energy		12,842		5,641		7,203		(2	)		7,201
Financial		31,186		22,417		8,998		(229	)		8,769
Industrial		21,145		6,239		15,098		(192	)		14,906
Technology		8,858		4,117		4,769		(28	)		4,741
Mutual fund		6,995		6,930		121		(56	)		65
Other		6,343		4,327		2,181		(165	)		2,016
Total equity securities		119,945		64,902		56,026		(983	)		55,043
Total	$	611,849	$	559,463	$	60,621	$	(8,235	)		52,386
							Applicable federal income taxes				(18,335	)
							Net unrealized gains - net of tax			$	34,051

Fixed maturity and equity security investments in unrealized loss position

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at March 31, 2017 and December 31, 2016, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position.

	March 31, 2017							December 31, 2016
	Number of Securities		Fair Value		Gross Unrealized Loss			Number of Securities		Fair Value		Gross Unrealized Loss
Fixed maturity securities:
12 months or less		375	$	258,128	$	(3,133	)		397	$	291,048	$	(4,380	)
Greater than 12 months		36		10,003		(1,720	)		54		32,054		(2,872	)
Total fixed maturities		411		268,131		(4,853	)		451		323,102		(7,252	)
Equity securities:
12 months or less		46		36,038		(1,143	)		35		20,698		(983	)
Greater than 12 months		-		-		-			-		-		-
Total equity securities		46		36,038		(1,143	)		35		20,698		(983	)
Total fixed maturity and equity securities		457	$	304,169	$	(5,996	)		486	$	343,800	$	(8,235	)

Fair value and cost or amortized cost of fixed maturity investments by contractual maturity

The fair value and the cost or amortized costs of fixed maturity investments at March 31, 2017, by contractual maturity, are shown below.  Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

	Fair Value		Cost or Amortized Cost
One year or less	$	71,509	$	71,658
Excess of one year to five years		291,246		292,665
Excess of five years to ten years		44,862		44,194
Excess of ten years		4,667		4,612
Contractual maturities		412,284		413,129
Asset-backed securities		96,518		94,823
Total	$	508,802	$	507,952

Realized gains on investments

Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying condensed consolidated statements of income.

	Three Months Ended
	March 31
	2017			2016
Fixed maturities:
Gross gains	$	888		$	1,277
Gross losses		(1,373	)		(2,896	)
Net realized losses		(485	)		(1,619	)
Equity securities:
Gross gains		1,606			15,510
Gross losses		(113	)		(2,700	)
Net realized gains		1,493			12,810
Limited partnerships - net gain (loss)		5,286			(2,179	)
Total net gains	$	6,294		$	9,012

Schedule of realized gains

Net realized gains activity for investments, as shown in the previous table, are further detailed as follows:

	Three Months Ended
	March 31
	2017			2016
Realized net gains on the disposal of securities	$	399		$	8,309
Mark-to-market adjustment		(284	)		(301	)
Equity in gains (losses) of limited partnership
investments - realized and unrealized		5,286			(2,179	)
Impairment:
Write-downs based upon objective criteria		-			(2,060	)
Recovery of prior write-downs
upon sale or disposal		893			5,243
Total net gains	$	6,294		$	9,012

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2017

Reinsurance [Abstract]

Reinsurance

The following table summarizes the Company's transactions with reinsurers for the 2017 and 2016 comparative periods.

	2017		2016
Three months ended March 31:
Premiums ceded to reinsurers	$	31,308	$	31,263
Losses and loss expenses
ceded to reinsurers		19,474		29,324
Commissions from reinsurers		7,408		9,137

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Loss and Loss Expense Reserves (Tables)

3 Months Ended

Mar. 31, 2017

Loss and Loss Expense Reserves [Abstract]

Summary of activity in reserves for losses and loss expenses

Activity in the reserves for losses and loss expenses for the three months ended March 31 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	2017		2016
Reserves at the beginning of the quarter	$	324,767	$	301,753
Provision for losses and loss expenses:
Claims occurring during the current quarter		48,487		39,861
Claims occurring during prior quarters		112		(1,238	)
Total incurred		48,599		38,623
Loss and loss expense payments:
Claims occurring during the current quarter		9,508		7,087
Claims occurring during prior quarters		41,814		35,526
Total paid		51,322		42,613
Reserves at the end of the quarter		322,044		298,296
Reinsurance recoverable on unpaid losses at the end of the quarter		256,797		226,498
Reserves, gross of reinsurance
recoverable, at the end of the quarter	$	578,841	$	524,794

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Summary of segment revenues

The following table summarizes segment revenues for the three months ended March 31, 2017 and 2016:

	Three Months Ended
	March 31
	2017		2016
Revenues:
Net premiums earned	$	73,974	$	66,909
Net investment income		3,692		3,440
Net realized gains on investments		6,294		9,012
Other		981		1,364
Total revenues	$	84,941	$	80,725

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value [Abstract]

Fair value measurements by level for assets measured at fair value on a recurring basis

The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of March 31, 2017:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	7,446	$	-	$	7,446	$	-
Agency mortgage-backed securities		10,693		-		10,693		-
Asset-backed securities		48,241		-		40,980		7,261
Bank loans		9,144		-		-		9,144
Certificates of deposit		3,119		3,119		-		-
Collateralized mortgage obligations		6,119		-		5,225		894
Corporate securities		177,294		20,025		156,477		792
Options embedded in convertible securities		5,015		-		5,015		-
Mortgage-backed securities		24,019		-		21,772		2,247
Municipal obligations		128,882		-		128,769		113
Non-U.S. government obligations		21,428		-		21,428		-
U.S. government obligations		67,402		-		67,402		-
Total fixed maturities		508,802		23,144		465,207		20,451
Equity securities:
Consumer		41,624		41,624		-		-
Energy		11,025		11,025		-		-
Financial		35,109		35,109		-		-
Industrial		24,147		23,139		1,008		-
Technology		9,518		9,518		-		-
Mutual fund		7,311		3,646		3,665		-
Other		6,780		6,780		-		-
Total equity securities		135,514		130,841		4,673		-
Short term		1,500		1,500		-		-
Cash equivalents		50,719		-		50,719		-
Total	$	696,535	$	155,485	$	520,599	$	20,451

As of December 31, 2016:
Description	Total		Level 1		Level 2		Level 3
Fixed maturities:
Agency collateralized mortgage obligations	$	6,171	$	-	$	6,171	$	-
Agency mortgage-backed securities		4,770		-		4,770		-
Asset-backed securities		45,183		-		37,919		7,264
Bank loans		10,349		-		-		10,349
Certificates of deposit		3,117		3,117		-		-
Collateralized mortgage obligations		9,104		-		6,409		2,695
Corporate securities		137,932		-		135,794		2,138
Options embedded in convertible securities		4,751		-		4,751		-
Mortgage-backed securities		24,571		-		22,206		2,365
Municipal obligations		129,335		-		129,190		145
Non-U.S. government obligations		24,681		-		24,419		262
U.S. government obligations		91,940		-		91,940		-
Total fixed maturities		491,904		3,117		463,569		25,218
Equity securities:
Consumer		32,576		32,576		-		-
Energy		12,842		12,842		-		-
Financial		31,186		30,943		243		-
Industrial		21,145		20,262		883		-
Technology		8,858		8,858		-		-
Mutual fund		6,995		-		6,995		-
Other		6,343		6,343		-		-
Total equity securities		119,945		111,824		8,121		-
Short term		1,500		1,500		-		-
Cash equivalents		59,683		-		59,683		-
Total	$	673,032	$	116,441	$	531,373	$	25,218

Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs

A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31:

	2017			2016
Beginning of period balance	$	25,218		$	16,793
Total gains or losses (realized or unrealized)
included in income		261			(175	)
Purchases		1,069			-
Settlements		(5,602	)		(316	)
Transfers into Level 3		113			-
Transfers out of Level 3		(608	)		-
End of period balance	$	20,451		$	16,302

Summary of the carrying value and fair value by level of financial instruments

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows:

	Carrying		Fair Value
	Value		Level 1		Level 2		Level 3		Total
March 31, 2017
Assets:   Limited partnerships	$	65,739	$	-	$	-	$	65,739	$	65,739
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000
December 31, 2016
Assets:   Limited partnerships		76,469		-		-		76,469		76,469
Liabilities:   Short-term borrowings		20,000		-		20,000		-		20,000

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Restricted Stock (Tables)

3 Months Ended

Mar. 31, 2017

Restricted Stock [Abstract]

Summary of stock issuances

The table below provides detail of the stock issuances for 2015 and 2016:

					Value
					Per Share
Effective	Number of Shares		Vesting	Service	on Grant
Date	Issued		Date	Period	Date
5/12/2015		21,252	5/12/2016	7/1/2015 - 6/30/2016	$	22.59
5/10/2016		17,677	5/10/2017	7/1/2016 - 6/30/2017	$	24.89

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2017

Accumulated Other Comprehensive Income [Abstract]

Changes in accumulated other comprehensive income by component

The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017:

				Unrealized
				holding gains on
	Foreign			available-for-sale
	Currency			securities			Total
Beginning balance	$	(831	)	$	34,051		$	33,220
Other comprehensive income
before reclassifications		65			5,990			6,055
Amounts reclassified from
accumulated other
comprehensive income		-			(655	)		(655	)
Net current-period other
comprehensive income		65			5,335			5,400
Ending balance	$	(766	)	$	39,386		$	38,620

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Summary of Significant Accounting Policies (Details) - Segment	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Number of reportable segments	1	2

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Investments (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017 USD ($) Security Partnership	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($) Security
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	$ 508,802
Cost or amortized cost	507,952
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Fair value	644,316		$ 611,849
Cost or amortized cost	583,722		559,463
Gross unrealized gains	66,590		60,621
Gross unrealized losses	(5,996)		(8,235)
Net unrealized gains (losses)	60,594		52,386
Applicable federal income taxes	(21,208)		(18,335)
Net unrealized gains - net of tax	$ 39,386		$ 34,051
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract]
Number of Securities, total | Security	457		486
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract]
Fair value, total	$ 304,169		$ 343,800
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Gross unrealized loss, total	(5,996)		(8,235)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
One year or less, Fair Value	71,509
Excess of one year to five years, Fair Value	291,246
Excess of five years to ten years, Fair Value	44,862
Excess of ten years, Fair Value	4,667
Total contractual maturities, Fair Value	412,284
Asset-backed securities, Fair Value	96,518
Total, Fair Value	508,802
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
One year or less, Cost or Amortized Cost	71,658
Excess of one year to five years, Cost or Amortized Cost	292,665
Excess of five years to ten years, Cost or Amortized Cost	44,194
Excess of ten years, Cost or Amortized Cost	4,612
Total contractual maturities, Cost or Amortized Cost	413,129
Asset-backed securities, Cost or Amortized Cost	94,823
Cost or amortized cost	507,952
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Limited partnerships - net gain (loss)	5,286	$ (2,179)
Net realized gains on investments	6,294	9,012
Available for Sale Securities Gain Loss Activity [Abstract]
Realized net gains on the disposal of securities	399	8,309
Mark-to-market adjustment	(284)	(301)
Equity in gains (losses) of limited partnership investments - realized and unrealized	5,286	(2,179)
Impairment [Abstract]
Write-downs based upon objective criteria	0	(2,060)
Recovery of prior write-downs upon sale or disposal	893	5,243
Net realized gains on investments	6,294	9,012
Undistributed earnings of limited partnership, net of taxes	28,312
Total investment in limited partnerships	$ 37,737
Number of partnerships investment | Partnership	2
Investment assets other than limited partnership	$ 23,531
Agency Collateralized Mortgage Obligations [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	7,446		6,171
Cost or amortized cost	7,065		6,000
Gross unrealized gains	381		171
Gross unrealized losses	0		0
Net unrealized gains (losses)	381		171
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	7,446		6,171
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	7,065		6,000
Agency Mortgage Backed Securities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	10,693		4,770
Cost or amortized cost	10,683		4,751
Gross unrealized gains	54		57
Gross unrealized losses	(44)		(38)
Net unrealized gains (losses)	10		19
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	10,693		4,770
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	10,683		4,751
Asset-backed Securities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	48,241		45,183
Cost or amortized cost	47,306		45,207
Gross unrealized gains	1,015		458
Gross unrealized losses	(80)		(482)
Net unrealized gains (losses)	935		(24)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	48,241		45,183
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	47,306		45,207
Bank Loans [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	9,144		10,349
Cost or amortized cost	9,041		10,222
Gross unrealized gains	120		149
Gross unrealized losses	(17)		(22)
Net unrealized gains (losses)	103		127
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	9,144		10,349
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	9,041		10,222
Certificates of Deposit [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	3,119		3,117
Cost or amortized cost	3,125		3,126
Gross unrealized gains	0		0
Gross unrealized losses	(6)		(9)
Net unrealized gains (losses)	(6)		(9)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	3,119		3,117
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	3,125		3,126
Collateralized Mortgage Obligations [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	6,119		9,104
Cost or amortized cost	6,034		9,096
Gross unrealized gains	262		290
Gross unrealized losses	(177)		(282)
Net unrealized gains (losses)	85		8
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	6,119		9,104
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	6,034		9,096
Corporate Securities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	182,308		142,683
Cost or amortized cost	181,917		143,356
Gross unrealized gains	2,056		1,643
Gross unrealized losses	(1,665)		(2,316)
Net unrealized gains (losses)	391		(673)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	182,308		142,683
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	181,917		143,356
Mortgage-backed Securities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	24,019		24,571
Cost or amortized cost	23,735		23,904
Gross unrealized gains	880		1,132
Gross unrealized losses	(596)		(465)
Net unrealized gains (losses)	284		667
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	24,019		24,571
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	23,735		23,904
Municipal Obligations [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	128,883		129,335
Cost or amortized cost	128,818		130,204
Gross unrealized gains	621		391
Gross unrealized losses	(556)		(1,260)
Net unrealized gains (losses)	65		(869)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	128,883		129,335
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	128,818		130,204
Non-U.S. Government Obligations [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	21,428		24,681
Cost or amortized cost	22,545		26,461
Gross unrealized gains	254		230
Gross unrealized losses	(1,371)		(2,010)
Net unrealized gains (losses)	(1,117)		(1,780)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	21,428		24,681
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	22,545		26,461
U.S. Government Obligations [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	67,402		91,940
Cost or amortized cost	67,683		92,234
Gross unrealized gains	60		74
Gross unrealized losses	(341)		(368)
Net unrealized gains (losses)	(281)		(294)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	67,402		91,940
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	67,683		92,234
Total Fixed Maturities [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Fair value	508,802		491,904
Cost or amortized cost	507,952		494,561
Gross unrealized gains	5,703		4,595
Gross unrealized losses	(4,853)		(7,252)
Net unrealized gains (losses)	$ 850		$ (2,657)
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract]
Number of Securities, 12 months or less | Security	375		397
Number of Securities, Greater than 12 months | Security	36		54
Number of Securities, total | Security	411		451
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract]
Fair value, 12 months or less	$ 258,128		$ 291,048
Fair value, Greater than 12 months	10,003		32,054
Fair value, total	268,131		323,102
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Gross unrealized loss, 12 months or less	(3,133)		(4,380)
Gross unrealized loss, Greater than 12 months	(1,720)		(2,872)
Gross unrealized loss, total	(4,853)		(7,252)
Available-for-sale Securities Debt Maturities Fair Value [Abstract]
Total, Fair Value	508,802		491,904
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract]
Cost or amortized cost	507,952		494,561
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross gains	888	1,277
Gross losses	(1,373)	(2,896)
Net realized gains (losses)	(485)	(1,619)
Consumer [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	41,624		32,576
Cost or amortized cost	21,194		15,231
Gross unrealized gains	20,825		17,656
Gross unrealized losses	(395)		(311)
Net unrealized gains (losses)	20,430		17,345
Energy [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	11,025		12,842
Cost or amortized cost	5,552		5,641
Gross unrealized gains	5,514		7,203
Gross unrealized losses	(41)		(2)
Net unrealized gains (losses)	5,473		7,201
Financial [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	35,109		31,186
Cost or amortized cost	25,836		22,417
Gross unrealized gains	9,522		8,998
Gross unrealized losses	(249)		(229)
Net unrealized gains (losses)	9,273		8,769
Industrial [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	24,147		21,145
Cost or amortized cost	7,981		6,239
Gross unrealized gains	16,336		15,098
Gross unrealized losses	(170)		(192)
Net unrealized gains (losses)	16,166		14,906
Technology [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	9,518		8,858
Cost or amortized cost	3,933		4,117
Gross unrealized gains	5,585		4,769
Gross unrealized losses	0		(28)
Net unrealized gains (losses)	5,585		4,741
Mutual Fund [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	7,311		6,995
Cost or amortized cost	6,930		6,930
Gross unrealized gains	472		121
Gross unrealized losses	(91)		(56)
Net unrealized gains (losses)	381		65
Other [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	6,780		6,343
Cost or amortized cost	4,344		4,327
Gross unrealized gains	2,633		2,181
Gross unrealized losses	(197)		(165)
Net unrealized gains (losses)	2,436		2,016
Total Equity Securities [Member]
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract]
Fair value	135,514		119,945
Cost or amortized cost	75,770		64,902
Gross unrealized gains	60,887		56,026
Gross unrealized losses	(1,143)		(983)
Net unrealized gains (losses)	$ 59,744		$ 55,043
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract]
Number of Securities, 12 months or less | Security	46		35
Number of Securities, Greater than 12 months | Security	0		0
Number of Securities, total | Security	46		35
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract]
Fair value, 12 months or less	$ 36,038		$ 20,698
Fair value, Greater than 12 months	0		0
Fair value, total	36,038		20,698
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract]
Gross unrealized loss, 12 months or less	(1,143)		(983)
Gross unrealized loss, Greater than 12 months	0		0
Gross unrealized loss, total	(1,143)		$ (983)
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Gross gains	1,606	15,510
Gross losses	(113)	(2,700)
Net realized gains (losses)	$ 1,493	$ 12,810

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Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reinsurance [Abstract]
Premiums ceded to reinsurers	$ 31,308	$ 31,263
Losses and loss expenses ceded to reinsurers	19,474	29,324
Commissions from reinsurers	$ 7,408	$ 9,137

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Loss and Loss Expense Reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Activity in the reserve for losses and loss expenses [Roll Forward]
Reserves at the beginning of the quarter	$ 324,767	$ 301,753
Provision for losses and loss expenses [Abstract]
Claims occurring during the current quarter	48,487	39,861
Claims occurring during prior quarters	112	(1,238)
Total incurred	48,599	38,623
Loss and loss expense payments [Abstract]
Claims occurring during the current quarter	9,508	7,087
Claims occurring during prior quarters	41,814	35,526
Total paid	51,322	42,613
Reserves at the end of the quarter	322,044	298,296
Reinsurance recoverable on unpaid losses at the end of the quarter	256,797	226,498
Reserves, gross of reinsurance recoverable, at the end of the quarter	578,841	$ 524,794
Savings developed in settlements of claims with comparative developments for previous calendar years	$ 112

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Segment Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017 USD ($) Segment	Mar. 31, 2016 USD ($)	Dec. 31, 2016 Segment
Segment Information [Abstract]
Number of reportable segments | Segment	1		2
Summary of Segment Revenue [Abstract]
Net premiums earned	$ 73,974	$ 66,909
Net investment income	3,692	3,440
Net realized gains on investments	6,294	9,012
Other	981	1,364
Total revenues	84,941	80,725
Property and Casualty Insurance [Member]
Summary of Segment Revenue [Abstract]
Net premiums earned	73,974	66,909
Net investment income	3,692	3,440
Net realized gains on investments	6,294	9,012
Other	981	1,364
Total revenues	$ 84,941	$ 80,725

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Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Debt [Abstract]
Revolving line of credit limit	$ 40,000
Line of credit maturity date	Sep. 23, 2018
Period of fixed interest on line of credit at company's options	1 year
Outstanding drawings on line of credit	$ 20,000	$ 20,000
Effective interest rate	2.08%
Remaining unused amount under line of credit	$ 20,000

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Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fixed maturities [Abstract]
Total fixed maturities	$ 508,802	$ 491,904
Equity securities [Abstract]
Total equity securities	135,514	119,945
Recurring [Member]
Fixed maturities [Abstract]
Agency collateralized mortgage obligations	7,446	6,171
Agency mortgage-backed securities	10,693	4,770
Asset-backed securities	48,241	45,183
Bank loans	9,144	10,349
Certificates of deposit	3,119	3,117
Collateralized mortgage obligations	6,119	9,104
Corporate securities	177,294	137,932
Options embedded in convertible securities	5,015	4,751
Mortgage-backed securities	24,019	24,571
Municipal obligations	128,882	129,335
Non-U.S. government obligations	21,428	24,681
U.S. government obligations	67,402	91,940
Total fixed maturities	508,802	491,904
Equity securities [Abstract]
Consumer	41,624	32,576
Energy	11,025	12,842
Financial	35,109	31,186
Industrial	24,147	21,145
Technology	9,518	8,858
Mutual fund	7,311	6,995
Other	6,780	6,343
Total equity securities	135,514	119,945
Short-term	1,500	1,500
Cash equivalents	50,719	59,683
Total fair value	696,535	673,032
Recurring [Member] | Level 1 [Member]
Fixed maturities [Abstract]
Agency collateralized mortgage obligations	0	0
Agency mortgage-backed securities	0	0
Asset-backed securities	0	0
Bank loans	0	0
Certificates of deposit	3,119	3,117
Collateralized mortgage obligations	0	0
Corporate securities	20,025	0
Options embedded in convertible securities	0	0
Mortgage-backed securities	0	0
Municipal obligations	0	0
Non-U.S. government obligations	0	0
U.S. government obligations	0	0
Total fixed maturities	23,144	3,117
Equity securities [Abstract]
Consumer	41,624	32,576
Energy	11,025	12,842
Financial	35,109	30,943
Industrial	23,139	20,262
Technology	9,518	8,858
Mutual fund	3,646	0
Other	6,780	6,343
Total equity securities	130,841	111,824
Short-term	1,500	1,500
Cash equivalents	0	0
Total fair value	155,485	116,441
Recurring [Member] | Level 2 [Member]
Fixed maturities [Abstract]
Agency collateralized mortgage obligations	7,446	6,171
Agency mortgage-backed securities	10,693	4,770
Asset-backed securities	40,980	37,919
Bank loans	0	0
Certificates of deposit	0	0
Collateralized mortgage obligations	5,225	6,409
Corporate securities	156,477	135,794
Options embedded in convertible securities	5,015	4,751
Mortgage-backed securities	21,772	22,206
Municipal obligations	128,769	129,190
Non-U.S. government obligations	21,428	24,419
U.S. government obligations	67,402	91,940
Total fixed maturities	465,207	463,569
Equity securities [Abstract]
Consumer	0	0
Energy	0	0
Financial	0	243
Industrial	1,008	883
Technology	0	0
Mutual fund	3,665	6,995
Other	0	0
Total equity securities	4,673	8,121
Short-term	0	0
Cash equivalents	50,719	59,683
Total fair value	520,599	531,373
Recurring [Member] | Level 3 [Member]
Fixed maturities [Abstract]
Agency collateralized mortgage obligations	0	0
Agency mortgage-backed securities	0	0
Asset-backed securities	7,261	7,264
Bank loans	9,144	10,349
Certificates of deposit	0	0
Collateralized mortgage obligations	894	2,695
Corporate securities	792	2,138
Options embedded in convertible securities	0	0
Mortgage-backed securities	2,247	2,365
Municipal obligations	113	145
Non-U.S. government obligations	0	262
U.S. government obligations	0	0
Total fixed maturities	20,451	25,218
Equity securities [Abstract]
Consumer	0	0
Energy	0	0
Financial	0	0
Industrial	0	0
Technology	0	0
Mutual fund	0	0
Other	0	0
Total equity securities	0	0
Short-term	0	0
Cash equivalents	0	0
Total fair value	$ 20,451	$ 25,218

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Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation [Roll Forward]
Beginning of period balance	$ 25,218	$ 16,793
Total gains or losses (realized or unrealized) included in income	261	(175)
Purchases	1,069	0
Settlements	(5,602)	(316)
Transfers into Level 3	113	0
Transfers out of Level 3	(608)	0
End of period balance	$ 20,451	$ 16,302

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Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets [Abstract]
Limited partnerships	$ 65,739	$ 76,469
Carrying Value [Member]
Assets [Abstract]
Limited partnerships	65,739	76,469
Liabilities [Abstract]
Short-term borrowings	20,000	20,000
Fair Value [Member]
Assets [Abstract]
Limited partnerships	65,739	76,469
Liabilities [Abstract]
Short-term borrowings	20,000	20,000
Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Limited partnerships	0	0
Liabilities [Abstract]
Short-term borrowings	0	0
Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Limited partnerships	0	0
Liabilities [Abstract]
Short-term borrowings	20,000	20,000
Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Limited partnerships	65,739	76,469
Liabilities [Abstract]
Short-term borrowings	$ 0	$ 0

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Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Feb. 08, 2017	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares distribution period from grant date		1 year
5/12/2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value per share on grant date (in dollars per share)		$ 22.59
Summary of stock Issuances [Abstract]
Number of shares issued (in shares)		21,252
Vesting date		May 12, 2016
Service Period		7/1/2015 - 6/30/2016
5/10/2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value per share on grant date (in dollars per share)		$ 24.89
Summary of stock Issuances [Abstract]
Number of shares issued (in shares)		17,677
Vesting date		May 10, 2017
Service Period		7/1/2016 - 6/30/2017
Restricted Stock Units (RSUs) [Member]
Summary of stock Issuances [Abstract]
Period restricted stocks will vest ratably from date of grant		3 years
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Outside Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total value of shares issued			$ 440	$ 480
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total value of shares issued	$ 480
Shares awarded (in shares)	20,181
Value per share on grant date (in dollars per share)	$ 23.80

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 404,345
Other comprehensive income before reclassifications	6,055
Amounts reclassified from accumulated other comprehensive income	(655)
Other comprehensive income (loss)	5,400	$ (7,631)
Ending balance	412,902
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	33,220
Ending balance	38,620
Foreign Currency [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(831)
Other comprehensive income before reclassifications	65
Amounts reclassified from accumulated other comprehensive income	0
Other comprehensive income (loss)	65
Ending balance	(766)
Unrealized Holding Gains on Available-for-sale Securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	34,051
Other comprehensive income before reclassifications	5,990
Amounts reclassified from accumulated other comprehensive income	(655)
Other comprehensive income (loss)	5,335
Ending balance	$ 39,386

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Other Operating Expenses (Details) - Director [Member] - Consulting Contract [Member] - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Annual consulting contract fees			$ 300
Total commission expense	$ 155	$ 0