SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2013

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Form 10-K

Baldwin & Lyons, Inc.

(Dollars in thousands)

Condensed Balance Sheets

	December 31
	2013		2012
Assets
Investment in subsidiaries	$	398,008	$	362,450
Due from affiliates		2,465		2,719
Investments other than subsidiaries:
Fixed maturities		11,093		11,073
Limited partnerships		248		255
		11,341		11,328
Cash and cash equivalents		9,848		12,143
Accounts receivable		7,075		8,033
Other assets		13,453		7,216
Total assets	$	442,190	$	403,889
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	30,004	$	29,652
Deposits from insureds		16,307		15,489
Notes payable to bank		10,000		10,000
Other liabilities		4,155		2,036
		60,466		57,177
Shareholders' equity:
Common stock:
Class A		112		112
Class B		525		524
Additional paid-in capital		50,594		50,275
Unrealized net gains on investments		49,089		35,467
Foreign exchange adjustment		1,401		1,976
Retained earnings		280,003		258,358
		381,724		346,712
Total liabilities and shareholders' equity	$	442,190	$	403,889

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Form 10-K

Baldwin & Lyons, Inc.

(Dollars in thousands)

Condensed Statements of Operations

	Year Ended December 31
	2013			2012			2011
Revenue:
Commissions and service fees	$	21,597		$	20,753		$	20,974
Dividends from subsidiaries		15,000			14,000			14,000
Net investment income		54			48			100
Net realized gains (losses) on investments		(11	)		(49	)		67
Other		41			24			98
		36,681			34,776			35,239
Expenses:
Salary and related items		15,965			15,410			12,281
Other		6,633			7,098			5,550
		22,598			22,508			17,831
Income before federal income taxes and equity in undistributed income of subsidiaries		14,083			12,268			17,408
Federal income tax (benefit)		(348	)		(629	)		1,004
		14,431			12,897			16,404
Equity in undistributed income (loss)   of subsidiaries		22,157			19,022			(44,579	)
Net income (loss)	$	36,588		$	31,919		$	(28,175	)

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Form 10-K

Baldwin & Lyons, Inc.

(Dollars in thousands)

Condensed Statements of Cash Flows

	Year Ended December 31
	2013			2012			2011
Net cash provided by operating activities	$	15,125		$	20,735		$	13,255
Investing activities:
Purchases of long-term investments		(10,322	)		(8,944	)		(10,025	)
Sales or maturities of long-term investments		9,982			8,902			9,704
Decrease in notes receivable from employees		-			1,252			106
Distributions from limited partnerships		-			-			444
Net disposals (purchases) of property and equipment		(1,775	)		(834	)		(622	)
Other		(362	)		228			128
Net cash provided by (used in) investing activities		(2,477	)		604			(265	)
Financing activities:
Dividends paid to shareholders		(14,943	)		(14,886	)		(14,846	)
Repayment on line of credit		-			-			(5,000	)
Net cash used in financing activities		(14,943	)		(14,886	)		(19,846	)
Increase (decrease) in cash and cash equivalents		(2,295	)		6,453			(6,856	)
Cash and cash equivalents at beginning of year		12,143			5,690			12,546
Cash and cash equivalents at end of year	$	9,848		$	12,143		$	5,690

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.