SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2017

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
Condensed Balance Sheets
	December 31
	2017			2016
	(dollars in thousands)
Assets
Investment in subsidiaries	$	436,879		$	409,892
Due from affiliates		1,191			3,381
Investments other than subsidiaries:
Fixed maturities		22,306			10,166
Limited partnerships		222			205
		22,528			10,371
Cash and cash equivalents		26,496			14,995
Accounts receivable		6,833			7,602
Other assets		24,772			25,763
Total assets	$	518,699		$	472,004
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	14,046		$	11,973
Deposits from insureds		60,893			30,087
Short-term borrownings		20,000			20,000
Other liabilities		4,949			5,599
		99,888			67,659
Shareholders' equity:
Common stock:
Class A		112			112
Class B		530			532
Additional paid-in capital		55,078			54,286
Unrealized net gains on investments		46,700			34,051
Foreign exchange adjustment		(309	)		(831	)
Retained earnings		316,700			316,195
		418,811			404,345
Total liabilities and shareholders' equity	$	518,699		$	472,004

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
Condensed Statements of Income
	Year Ended December 31
	2017			2016			2015
	(dollars in thousands)
Revenue:
Commissions and service fees	$	18,863		$	27,736		$	23,523
Cash dividends from subsidiaries		10,000			20,000			20,000
Net investment income		348			134			120
Net realized gains (losses) on investments		308			(3	)		(22	)
Other		(106	)		(24	)		(17	)
		29,413			47,843			43,604
Expenses:
Salary and related items		18,140			17,462			17,616
Other		9,686			10,808			7,297
		27,826			28,270			24,913
Income before federal income taxes
and equity in undistributed
income of subsidiaries		1,587			19,573			18,691
Federal income tax benefit		(2,971	)		(69	)		(350	)
		4,558			19,642			19,041
Equity in undistributed income
of subsidiaries		13,765			9,303			4,242
Net income	$	18,323		$	28,945		$	23,283

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
Condensed Statements of Comprehensive Income
	2017			2016			2015
	(dollars in thousands)
Net income	$	18,323		$	28,945		$	23,283
Other comprehensive income (loss), net of tax:
Unrealized net losses on securities:
Unrealized holding net gains (losses) arising during the period		17,340			8,618			(12,639	)
Less: reclassification adjustment for net gains
included in net income		(4,691	)		(13,491	)		(277	)
Other comprehensive income (loss), net of tax		12,649			(4,873	)		(12,916	)
Foreign currency translation adjustments		522			235			(1,456	)
Other comprehensive income (loss)		13,171			(4,638	)		(14,372	)
Comprehensive income	$	31,494		$	24,307		$	8,911

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
Condensed Statements of Cash Flows
	Year Ended December 31
	2017			2016			2015
	(dollars in thousands)
Net cash provided by operating activities	$	44,998		$	15,484		$	21,841
Investing activities:
Purchases of long-term investments		(21,365	)		(4,000	)		(4,792	)
Sales or maturities of long-term investments		9,146			3,493			4,194
Net sales of short-term investments		-			2,165			-
Distributions from limited partnerships		298			-			-
Net purchases of property and equipment		(3,394	)		(4,278	)		(4,921	)
Net cash used in investing activities		(15,315	)		(2,620	)		(5,519	)
Financing activities:
Dividends paid to shareholders		(16,302	)		(15,803	)		(15,003	)
Repurchase of common shares		(1,880	)		-			-
Net cash used in financing activities		(18,182	)		(15,803	)		(15,003	)
Increase (decrease) in cash and cash equivalents		11,501			(2,939	)		1,319
Cash and cash equivalents at beginning of year		14,995			17,934			16,615
Cash and cash equivalents at end of year	$	26,496		$	14,995		$	17,934

Note to Condensed Financial Statements -- Basis of Presentation

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