SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2014

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
	2014		2013
Assets
Investment in subsidiaries	$	415,304	$	398,008
Due from affiliates		2,762		2,465
Investments other than subsidiaries:
Fixed maturities		11,924		11,093
Limited partnerships		233		248
		12,157		11,341
Cash and cash equivalents		16,615		9,848
Accounts receivable		5,157		7,075
Other assets		17,905		13,453
Total assets	$	469,900	$	442,190
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	27,850	$	30,004
Deposits from insureds		18,303		16,307
Notes payable to bank		20,000		10,000
Other liabilities		4,251		4,155
		70,404		60,466
Shareholders' equity:
Common stock:
Class A		112		112
Class B		527		525
Additional paid-in capital		51,854		50,594
Unrealized net gains on investments		51,840		49,089
Foreign exchange adjustment		390		1,401
Retained earnings		294,773		280,003
		399,496		381,724
Total liabilities and shareholders' equity	$	469,900	$	442,190

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Statements of Operations
	Year Ended December 31
	2014			2013			2012
Revenue:
Commissions and service fees	$	22,153		$	21,597		$	20,753
Dividends from subsidiaries		15,000			15,000			14,000
Net investment income		102			54			48
Net realized losses on investments		(27	)		(11	)		(49	)
Other		126			41			24
		37,354			36,681			34,776
Expenses:
Salary and related items		15,543			15,965			15,410
Other		7,978			6,633			7,098
		23,521			22,598			22,508
Income before federal income taxes
and equity in undistributed
income of subsidiaries		13,833			14,083			12,268
Federal income tax benefit		(294	)		(348	)		(629	)
		14,127			14,431			12,897
Equity in undistributed income
of subsidiaries		15,590			22,157			19,022
Net income	$	29,717		$	36,588		$	31,919

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
	2014			2013			2012
Net cash provided by operating activities	$	19,719		$	15,125		$	20,735
Investing activities:
Purchases of long-term investments		(6,398	)		(10,322	)		(8,944	)
Sales or maturities of long-term investments		5,253			9,982			8,902
Decrease in notes receivable from employees		-			-			1,252
Distributions from limited partnerships		13			-			-
Net purchases of property and equipment		(6,873	)		(1,775	)		(834	)
Other		-			(362	)		228
Net cash provided by (used in) investing activities		(8,005	)		(2,477	)		604
Financing activities:
Dividends paid to shareholders		(14,947	)		(14,943	)		(14,886	)
Drawings on line of credit		10,000			-			-
Net cash used in financing activities		(4,947	)		(14,943	)		(14,886	)
Increase (decrease) in cash and cash equivalents		6,767			(2,295	)		6,453
Cash and cash equivalents at beginning of year		9,848			12,143			5,690
Cash and cash equivalents at end of year	$	16,615		$	9,848		$	12,143

Note to Condensed Financial Statements--Basis of PresentationThe 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.